India’s Forex Reserves Hit All-Time High of $729.32 Billion: Key Takeaways

India''s forex reserves jumped USD 12.422 billion to a new all-time high of USD 729.328 billion during the week ended August 21, the RBI said on Friday. In the previous reporting week, the kitty had increased by USD 9.905 billion to USD 716.907 billion. Gold reserves increased by USD 2.801 billion to USD 114.218 billion as well. 

The previous all-time high of USD 728.494 billion was attained during the week ended February 27 this year, right before the onset of the Middle East conflict. Geopolitical tensions led to several weeks of a drop as the rupee and the RBI had to intervene in the forex market through dollar sales.

For the week ended August 21, foreign currency assets, a major component of the reserves, increased USD 9.482 billion to USD 591.333 billion, the central bank''s data showed.

Expressed in dollar terms, foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves.

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It can be recalled that the central bank and the government had last month launched a series of measures, including the FCNR(B), to attract more forex flows into the country. The country has so far received USD 72 billion under the concessional

swap measures.

Value of gold reserves increased by USD 2.801 billion to USD 114.218 billion during the week, the RBI said. The special drawing rights (SDRs) were up by USD 112 million at USD 18.852 billion, the apex bank said.

India''s reserve position with the IMF was also up USD 26 million to USD 4.925 billion at the end of the reporting week, according to the apex bank''s data. 

India Forex Rises To All-Time High: Key Takeaways

• India's total forex reserves climbed to a record high of $729.328 billion for the week ending August 21, marking a weekly increase of $12.422 billion.
   
• Gold reserves saw a notable rise of $2.801 billion, reaching a total value of $114.218 billion.
   
• Foreign currency assets, a primary component of these reserves, increased by $9.482 billion to reach $591.333 billion.
• Government and RBI initiatives, such as concessional swap measures like FCNR(B), have successfully attracted $72 billion in foreign exchange flows to the country.

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