India’s foreign exchange reserves have extended their upward trend, rising by $1.08 billion to $676.237 billion for the week ended July 17, according to data released by the Reserve Bank of India (RBI) on Friday. This marks the third consecutive weekly gain, following a $964 million increase in the previous week that brought reserves to $675.157 billion.
The RBI’s weekly statistical supplement showed that the country’s forex reserves continue to recover from declines witnessed earlier this year amid global uncertainties. For the week, foreign currency assets—a major component—rose by $4.549 billion to $551.057 billion. However, the value of gold reserves dipped by $3.48 billion to $101.749 billion.
Special Drawing Rights (SDRs) saw a minor uptick of $44 million, reaching $18.67 billion. India’s forex reserves had surged to an all-time high of $728.494 billion in late February before being moderated by RBI interventions to stabilize the rupee amidst Middle East tensions.
The RBI stated it remains vigilant, intervening only to curb excessive volatility without targeting any specific exchange rate. A healthy reserve level strengthens India’s buffer against external shocks, supporting its ability to meet payment obligations and finance imports.
Article and image source: ibtimes.co.in
