Mumbai: India’s foreign exchange reserves rose by USD 2.294 billion, reaching USD 698.95 billion for the week ending June 13, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a continued upward trend, following a USD 5.17 billion increase in the previous week, which ended on June 6.
With this rise, India’s forex reserves are inching closer to the record high of USD 704.885 billion, which was achieved at the end of September 2024.
A detailed breakdown of the data reveals that foreign currency assets (FCAs)—the largest component of the reserves—rose by USD 1.739 billion to USD 589.426 billion. These assets include the effect of appreciation or depreciation of non-US currencies such as the euro, pound sterling, and yen held in the reserves.
Gold reserves also saw a notable rise, increasing by USD 428 million to USD 86.316 billion, indicating a firming up of gold prices and possibly increased central bank purchases.
Additionally, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by USD 85 million, bringing the total to USD 18.756 billion. India’s reserve position with the IMF also saw a marginal increase of USD 43 million, reaching USD 4.452 billion.
The steady rise in reserves reflects a strong balance of payments position and gives the RBI greater flexibility in managing external shocks, supporting the rupee, and maintaining economic stability amid global uncertainties.
