Business News: India's Forex Reserves Surge to Unprecedented Levels
Business News: India's Forex Reserves at Record High
India's forex reserves have achieved an all-time high of $692.296 billion, experiencing an increase of $2.838 billion in the week ending September 20, as per data released by the Reserve Bank of India.
Components of India's Forex Reserves
- Foreign Currency Assets: Comprising the largest portion of the reserves at $605.686 billion, showing a rise of $2.057 billion from the previous week.
- Gold Reserves: Valued at $61.988 billion.
- Special Drawing Rights (SDRs): Increased by $121 million to $18.54 billion.
- IMF Holdings: Decreased by $66 million to $4.458 billion.
Significance of Forex Reserves
With an increase of $58 billion in 2023, foreign exchange reserves, also known as forex reserves, are essential in cushioning the economy against global shocks. The Reserve Bank of India actively monitors the foreign exchange market, intervening as needed to uphold stability.
The RBI's involvement includes liquidity management strategies, like dollar sales, to prevent a steep decline in 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.