Daijiworld Media Network - New Delhi
New Delhi, Sep 12: India’s foreign exchange reserves surged by $4.03 billion, reaching a total of $698.26 billion for the week ending September 5, according to the latest data from the Reserve Bank of India (RBI). This marks the second consecutive week of robust growth, following a $3.51 billion increase in the previous week.
The rise was driven primarily by a sharp uptick in gold reserves, which jumped by $3.53 billion to $90.29 billion. Foreign currency assets (FCAs), which form the largest share of the reserves, rose by $540 million to $584.47 billion. These FCAs include holdings in major global currencies like the euro, pound, and yen, and their value is also influenced by currency exchange movements.
Special Drawing Rights (SDRs) stood unchanged at $18.74 billion, while India’s reserve position with the International Monetary Fund (IMF) saw a modest rise of $2 million to $4.75 billion.
With the total reserves now inching closer to the symbolic $700 billion threshold, analysts say the sizable buffer enhances India’s ability to weather external shocks, such as global market volatility or geopolitical tensions. It also reinforces investor confidence in the country’s economic stability.
The RBI continues to intervene in the foreign exchange market as needed to manage rupee volatility. These interventions are aimed at smoothing out fluctuations rather than defending a specific exchange rate.
India’s forex stockpile is now among the highest globally, positioning the country strongly in the face of uncertain global financial conditions.