Inflation and Monetary Policy Influence India's Forex Reserves Reaching $681.69 Billion
Inflation and Monetary Policy Boost India's Forex Reserves
India's forex reserves have surged to an all-time high of $681.69 billion, showing an increase of $7.02 billion as reported on August 23 by the Reserve Bank of India (RBI). This striking growth in reserves follows a previous increase of $4.54 billion for the week ending August 16. In comparison, before these surges, forex reserves had experienced a dip of $4.8 billion on August 9.
Details of India's Forex Reserves Growth
- Foreign currency assets (FCAs) saw an increase of $5.98 billion to reach $597.55 billion.
- Gold reserves expanded by $893 million to total $60.9 billion.
- Special Drawing Rights (SDRs) were up $118 million, now standing at $18.45 billion.
- The reserve position in the IMF also increased by $3 million to $4.68 billion.
The RBI adopts various measures to manage liquidity in the market, including selling dollars to avert sudden depreciation of the rupee. By carefully monitoring the foreign exchange markets, the RBI ensures stability without strictly adhering to predetermined levels for currency exchange rates.
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.