India’s Forex Reserves Hit Record High, Surging Past $666 Billion

Mumbai: India’s foreign exchange reserves surged to an all-time high, reaching a staggering $666.854 billion for the week ending July 12, according to the Reserve Bank of India (RBI). This marks a significant jump of $9.699 billion compared to the previous week, which itself had set a new record at $657.155 billion.

The primary driver of this growth was a substantial increase in foreign currency assets, a key component of the reserves. These assets, valued at $585.47 billion after rising by $8.361 billion, reflect the impact of fluctuations in currencies like the euro, pound, and yen held by the RBI.

Gold reserves also saw a healthy increase, rising by $1.231 billion to reach $58.663 billion. Additionally, Special Drawing Rights (SDRs) grew by $76 million to $18.111 billion, and India’s reserve position with the International Monetary Fund (IMF) witnessed a $32 million uptick to $4.609 billion.

This continuous rise in forex reserves signifies a positive development for the Indian economy. A strong forex reserve provides a buffer against external economic shocks and strengthens the country’s ability to manage its exchange rate.