India's Foreign Exchange Reserves Rise To Six-Month High; Is India Among Top 5 Countries? Here's The Data

The trade has been turbulent across the world for the past few months due to conflict on several fronts, including war between the US and Iran in the Middle East and the Trump tariffs. Geopolitics in many countries has severely impacted supply chains, and inflation has also risen, putting pressure on foreign exchange reserves. However, according to data released on Friday, India's foreign exchange reserves increased to USD 716.9 billion during the week ending August 14, the highest level in nearly six months.

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The reserves increased by about USD 10 billion week-on-week, led by a USD 7.2 billion rise in the central bank's foreign currency assets, while the value of gold reserves increased by USD 2.7 billion.

USD 50 Billion Increase

The increase in foreign exchange reserves is due to the inflow of funds received under the policy measures adopted by the central bank to strengthen India's balance of payments. According to news agency Reuters, the central bank's foreign exchange reserves have increased by about USD 50 billion in the last seven weeks. The reserves are now very close to the record high of USD 728.5 billion reached in February.

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The RBI announced that it had received nearly UDS 57 billion in investments under the measures, including more than USD 50 billion in foreign currency deposits, as of August 13. Given this large inflow, the central bank decided to close its deposit hedging facility a month early, on August 31.

Top 5 Countries With The Highest Foreign Exchange Reserves

Foreign exchange reserve figures fluctuate rapidly, but when it comes to the top five countries, China holds the top spot. Japan is second, Switzerland is third, Russia is fourth, and India is fifth.

(With Jagran.com Inputs)