India's Forex Reserves Hit Record High of USD 683.987 Billion

India's foreign exchange reserves surged by USD 2.299 billion, reaching a historic peak of USD 683.987 billion. This rise marks a significant increase from the previous record of USD 681.688 billion, primarily driven by a boost in foreign currency and gold reserves.

India's foreign exchange reserves surged by USD 2.299 billion, hitting a record high of USD 683.987 billion during the week ending August 30, according to the Reserve Bank of India (RBI) data released on Friday. The previous record stood at USD 681.688 billion.

In 2024 alone, the reserves have increased cumulatively by over USD 60 billion, providing a vital buffer against global economic shocks. Data from the RBI revealed that foreign currency assets (FCA), the largest component of forex reserves, rose by USD 1.485 billion to reach USD 599.037 billion.

Gold reserves also saw a boost, increasing by USD 862 million to a total of USD 61.859 billion. India's current foreign exchange reserves are sufficient to cover approximately a year of projected imports. In 2023, India added about USD 58 billion to its reserves, following a decline of USD 71 billion in 2022.

Forex reserves, held by a nation's central bank, are generally in reserve currencies like the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI monitors foreign exchange markets closely and intervenes as needed to maintain order, typically using liquidity management practices such as dollar sales to curb excessive volatility in the exchange rate. (ANI)

(With inputs from agencies.)