India's forex reserves reach record high of $681 billion
What's the story
India's foreign exchange reserves have reached a new peak of $681.69 billion as of August 23, marking an increase of $7.02 billion, according to data from the Reserve Bank of India (RBI). This surge follows a previous increase where reserves grew by $4.54 billion to $674.66 billion, for the week ending on August 16. The RBI periodically intervenes in the market through liquidity management strategies, including selling Dollars, to prevent a sharp depreciation in the Rupee value.
Asset expansion
Foreign currency assets see significant growth
The RBI's Weekly Statistical Supplement revealed that foreign currency assets (FCAs) saw a significant increase of $5.98 billion, reaching $597.55 billion. These FCAs, expressed in USD terms, account for changes in the value of non-US currencies such as the Euro, Pound, and Yen held within the forex reserves. Additionally, gold reserves experienced a substantial rise of $893 million to reach $60.9 billion during the same period.
Reserve growth
SDRs and IMF reserve position also increase
Special drawing rights (SDRs) for the week ending on August 23 also saw an increase of $118 million, reaching a total of $18.45 billion. The reserve position with the International Monetary Fund (IMF) experienced a slight rise by $3 million to stand at $4.68 billion. These figures further contribute to the overall growth of India's forex reserves during this period.