India’s forex reserves have soared to an unprecedented $728.5 billion, signalling robust economic strength and stability, according to the latest data from the Reserve Bank of India.
Illustration: Dado Ruvic/Reuters
Key Points
- India’s forex reserves hit a record high of $728.5 billion, indicating a strong external position.
- The increase in forex reserves was driven by a rise in foreign currency assets and a significant increase in the value of gold reserves.
- The Reserve Bank of India (RBI) data reveals a positive trend in India’s reserve position with the IMF.
- The surge in forex reserves reflects the overall health and stability of the Indian economy.
India’s forex reserves jumped $4.885 billion to an all-time high of $728.5 billion during the week ended February 27, the Reserve Bank said on Friday.
In the previous reporting week, the overall reserves had dropped $2.12 billion to $723.61 billion.
The previous all time high for the kitty was $725.73 billion during the week ended February 13 this year.
Key Components of the Forex Reserves
For the week ended February 27, foreign currency assets, a major component of the reserves, increased $561 million to $573.12 billion, the data released by the central bank showed.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
Gold Reserves and SDR
Value of the gold reserves increased $4.14 billion to $131.63 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were up $26 million to $18.87 billion, the apex bank said.
India’s reserve position with the IMF was also up $158 million to $4.87 billion in the reporting week, according to the apex bank’s data.
