India’s Forex Reserves Rise Again; RBI Reports $676.24 Billion Stockpile

India’s foreign exchange reserves increased by $1.08 billion to $676.237 billion for the week ended July 17, continuing their upward trend, according to data released by the Reserve Bank of India (RBI) on Friday.

The latest increase follows a $964 million rise in the previous reporting week, when the country’s forex reserves stood at $675.157 billion.

The RBI’s weekly statistical supplement indicated that the reserves have continued to recover after earlier declines triggered by heightened global uncertainties.

According to the RBI, foreign currency assets (FCAs), the largest component of the reserves, rose by $4.549 billion to $551.057 billion during the reporting week.

Expressed in dollar terms, FCAs also reflect the impact of appreciation or depreciation of non-US currencies such as the euro, pound and yen.

The value of gold reserves declined by $3.48 billion to $101.749 billion. Special Drawing Rights (SDRs) also increased by $44 million to $18.67 billion.

India’s forex reserves had earlier touched an all-time high of $728.494 billion during the week ended February 27.

The RBI noted that foreign exchange reserves, comprising foreign currency assets, gold reserves, SDRs and the reserve tranche position with the International Monetary Fund (IMF), play a crucial role in protecting the economy from external shocks and supporting the stability of the rupee.

The central bank has maintained that it intervenes in the foreign exchange market only to curb excessive volatility and ensure orderly market conditions, without targeting any specific exchange rate.

A strong forex reserve position also strengthens India’s ability to meet external payment obligations, finance imports and withstand global financial and geopolitical uncertainties.

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