Daijiworld Media Network - Mumbai

Mumbai, Jul 5: India’s foreign exchange reserves have surged past the $700 billion mark once again, reaching $702.78 billion for the week ending June 27, the Reserve Bank of India (RBI) announced on Friday. This represents a $4.8 billion increase from the previous week's reserves of $697.93 billion.

This is the first time in nine months that reserves have crossed this key milestone. The last time India’s forex reserves were above this level was in late September 2024, when they touched an all-time high of $704.88 billion.

Key Contributors to the rise:

• The increase was largely driven by a $5.75 billion jump in foreign currency assets, which now stand at $594.82 billion.
• Gold reserves were stable at $84.5 billion.
• Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $158 million to $18.83 billion.

Foreign currency assets — which include holdings in major currencies like the euro, pound, and yen — are adjusted based on their exchange rates against the US dollar and form the bulk of India's total reserves.

The RBI continues to actively manage the forex market, intervening to curb volatility and ensure rupee stability, though it does not maintain a fixed exchange rate.

Record Remittances from Overseas Indians

In a parallel development, remittances from Indians working abroad rose 14% in the financial year 2024-25 to a record $135.46 billion, RBI data revealed.

• These inflows, classified as “private transfers,” made up over 10% of India’s $1 trillion gross current account flows in FY25.
• For the January–March quarter, personal transfer receipts — mainly remittances — grew to $33.9 billion, compared to $31.3 billion in the same period a year ago.

With robust remittance inflows and swelling reserves, India's external sector remains resilient, providing the RBI greater flexibility in navigating global uncertainties and managing domestic currency fluctuations.