India’s Forex Reserves Rise $11.475 Billion To Record $740.803 Billion

India’s foreign exchange reserves climbed by $11.475 billion in the week ended August 28, taking the country’s total reserves to a record $740.803 billion, according to Reserve Bank of India (RBI) data released on Friday.

The latest increase has pushed reserves $49.696 billion above their end-March level and $46.574 billion higher than the corresponding period last year.

Foreign currency assets (FCA), the largest component of the reserves, accounted for a significant part of the weekly rise.

FCA increased by $9.337 billion to $600.67 billion.

The component is now $48.387 billion higher than at the end of March and $16.73 billion above its year-ago level.

Gold reserves strengthened, rising $2.191 billion during the week to $116.409 billion.

Gold holdings have increased by $1.014 billion since the end of March and are up $29.641 billion from a year earlier.

India’s Special Drawing Rights (SDRs) with the International Monetary Fund fell by $43 million over the week to $18.81 billion. SDR holdings, however, remain $188 million higher than at the end of March.

The country’s reserve position with the IMF declined by $11 million to $4.914 billion, although it has risen $106 million since the end of March.

The rise in reserves follows strong foreign currency inflows through measures introduced by the RBI, including its special dollar-rupee swap facility.

As of August 31, the banking system had mobilised $136.38 billion through the facility.

FCNR(B) deposits contributed $127.23 billion, while overseas foreign currency borrowings accounted for $5.26 billion and external commercial borrowings added $3.89 billion.

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