India’s foreign exchange reserves have witnessed a noteworthy increase, reaching a level just shy of their all-time high, according to the latest data released by the Reserve Bank of India (RBI).
The data shows that the reserves have grown by $4.546 billion, reaching a total of $674.664 billion during the week ending August 16. This figure is just slightly below the previous record high of $674.919 billion, as reported by Asian News International (ANI).
The reserves have been fluctuating over time, but the cumulative increase in 2024 alone has been around $45-50 billion. This substantial buffer of foreign exchange reserves helps insulate India’s domestic economic activity from global shocks and uncertainties.
The RBI’s latest report further reveals that the largest component of the forex reserves, the foreign currency assets (FCA), rose by $3.609 billion to reach $591.569 billion.
Additionally, India’s gold reserves increased by $865 million during the week, bringing the total to $60.104 billion. This robust level of foreign exchange reserves is now sufficient to cover more than 11 months of projected imports.
The RBI closely monitors the foreign exchange markets and intervenes only when necessary to maintain orderly market conditions and to control excessive volatility in the exchange rate.
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