India’s Forex Reserves Surge by USD 5.08 Billion, Reaching USD 595.4 Billion

Mumbai: India’s forex reserves witnessed a notable increase, surging by USD 5.077 billion to reach USD 595.397 billion for the week ending November 17, as per the Reserve Bank’s announcement on Friday. This marks a significant turnaround from the preceding week, which had seen a decline of USD 462 million, leaving the reserves at USD 590.321 billion.

The key component of reserves, foreign currency assets, jumped by USD 4.387 billion, reaching USD 526.391 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI). This growth is noteworthy considering that India’s forex reserves had touched a record high of USD 645 billion in October 2021.

The depletion of forex reserves in recent times can be attributed to the central bank’s utilization of funds to safeguard the rupee against pressures arising from global developments. It is important to note that foreign currency assets, when expressed in dollar terms, are subject to fluctuations due to currency movements of major currencies like the euro, pound, and yen.

The RBI reported an increase in gold reserves by USD 527 million, totalling USD 46.042 billion for the week. Special Drawing Rights also witnessed a rise of USD 120 million, reaching USD 18.131 billion. Furthermore, India’s reserve position with the International Monetary Fund (IMF) saw an uptick of USD 42 million, reaching USD 4.833 billion during the reported week, as per RBI data.