Daijiworld Media Network - New Delhi

New Delhi, Aug 21: India’s foreign exchange reserves jumped $9.905 billion to $716.90 billion during the week ended August 14, according to data released by the Reserve Bank of India (RBI) on Friday.

The latest increase came a week after the country’s forex reserves surged by $14.1 billion to $707 billion, marking their highest level in the current financial year.

The rise during the latest week was supported by inflows under the RBI’s FCNR(B) deposit scheme, which began reflecting in the country’s foreign exchange reserves.

Foreign currency assets (FCA), the largest component of India’s forex reserves, increased by $7.2 billion to $581.85 billion during the week. The rise in FCAs accounted for the largest share of the overall increase.

India’s gold reserves also recorded a substantial increase, rising by $2.67 billion to $111.41 billion during the week.

The strong accretion in foreign exchange reserves strengthens India’s external sector buffers and provides greater resilience against global economic and financial uncertainties.

In the previous week, India’s forex reserves had risen sharply by $14.136 billion during the week ended August 7, crossing the $707 billion mark. The increase was driven by a significant rise in foreign currency assets and gold reserves.

In rupee terms, the country’s reserves had expanded by Rs 1.19 lakh crore to Rs 67.32 lakh crore during the previous reporting week, underscoring the strength of India’s external sector position, according to central bank data.

The earlier rise was led by an increase in FCAs, which climbed by $9.946 billion to $574.625 billion.

Gold reserves also increased substantially during that week, rising by $3.995 billion to $108.738 billion.

The value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund increased by $79 million to $18.745 billion.