India's Forex Reserves Hit Record $666.85 Billion
India's foreign exchange reserves have reached an unprecedented $666.85 billion, a rise of $9.69 billion in a week. RBI data shows significant gains in foreign currency assets and gold reserves. The reserves are now sufficient to cover 11 months of projected imports.
- Country:
- India
India's foreign exchange reserves have surged to a new peak of USD 666.85 billion, according to the Reserve Bank of India (RBI). The data reveals an increase of USD 9.69 billion in just one week, as of 12 July, surpassing the previous high of USD 657.2 billion. The forex reserves have been on the rise intermittently.
The RBI report highlights that India's largest component of forex reserves, the foreign currency assets (FCA), rose by USD 8.3 billion to USD 585.47 billion. Additionally, gold reserves increased by USD 1.2 billion, reaching USD 58.66 billion. According to the central bank, these reserves can now cover more than 11 months of projected imports.
In 2023, the RBI added around USD 58 billion to its foreign exchange reserves, contrasting with a decline of USD 71 billion in 2022. The rise in reserves comes after a record high in October 2021, followed by a decline due to increased import costs in 2022. The drops have also been linked to the RBI's interventions to manage the rupee's depreciation against a stronger US dollar. Typically, the RBI intervenes with liquidity management, including dollar sales, to curb excessive volatility without adhering to a pre-set target.
(With inputs from agencies.)