India’s foreign exchange reserves saw an increase of $2.299 billion, reaching a new all-time high of $683.987 billion for the week ending August 30, according to the Reserve Bank of India (RBI).
The Asian News International (ANI) reported that the previous peak was $681.688 billion. The reserves have been steadily rising for a while now, with an increase of over $60 billion just in 2024. This substantial cushion of foreign exchange reserves plays a vital role in protecting the domestic economy from global economic fluctuations.
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RBI data reveals that India’s foreign currency assets (FCA), the main component of these reserves, increased by $1.485 billion, reaching a total of $599.037 billion.
Additionally, gold reserves increased by $862 million during the week, bringing the total to $61.859 billion. Recent estimates indicate that India’s foreign exchange reserves are sufficient to cover almost a year’s worth of expected imports.
In 2023, India has added approximately $58 billion to its foreign exchange reserves.
Foreign exchange reserves (forex reserves or FX reserves) are assets maintained by a country’s central bank or monetary authority, typically held in reserve currencies such as the US dollar, with smaller amounts in euros, Japanese yen, and British pounds.
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