India's Forex Reserves Reach a New High of $689 Billion According to RBI Data
Unprecedented Growth in India's Forex Reserves
NEW DELHI: Business news reveals that India's foreign exchange reserves rose by $223 million, achieving a significant milestone of $689.458 billion for the week ending September 13, according to data released by the Reserve Bank of India (RBI) on Friday. This notable increase comes after the reserves reached $689.235 billion the previous week, following a rise of $5.248 billion.
Breakdown of Forex Reserves
- Foreign currency assets (FCA): These reserves experienced a decline of $515 million, totaling $603.629 billion by September 13.
- Gold reserves: Reported a noteworthy increase of $899 million, reaching USD 62.887 billion during the same week.
- Special Drawing Rights (SDRs): Experienced a slight decrease of $53 million, totaling $18.419 billion.
- IMF Reserve Position: Also saw a decline, settling at $4.523 billion, below previous figures.
Significance of Forex Reserves
Foreign exchange reserves are essential assets held by the apex bank or monetary authority. The RBI vigilantly oversees the forex markets, intervening only to maintain orderly market conditions and mitigate excessive exchange rate volatility. Through various liquidity management measures, including the strategic sale of dollars, the RBI aims to prevent substantial depreciation of the rupee.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.