India’s Forex Reserves Climb to $698.192 Billion
India’s foreign exchange reserves rose by $2.703 billion to reach a total of $698.192 billion for the week ending July 25. This increase, reported by the RBI on August 1, follows a drop of $1.183 billion in the preceding week.
The growth in reserves was driven by increases across its major components:
- Foreign Currency Assets (FCA): The largest part of the reserves, FCA, grew by $1.316 billion, bringing its total to $588.926 billion. This figure accounts for the value of non-US currencies like the euro and yen.
- Gold Reserves: Holdings of gold increased by $1.206 billion to $85.704 billion.
- Special Drawing Rights (SDRs): These assets were up by $126 million, reaching $18.809 billion.
- IMF Reserve Position: India’s reserve position with the IMF rose by $55 million to $4.753 billion.
The RBI actively manages these reserves to ensure stable and orderly market conditions, utilizing measures like selling dollars to curb currency volatility. The central bank’s goal is not to target a specific rupee value, but to maintain a stable environment.