India’s foreign exchange reserves saw an increase of $964 million, reaching $675.16 billion for the week ending July 10, as per data released by the Reserve Bank of India. This rise follows a significant surge of $7.26 billion in the previous week, when the reserves had reached $674.19 billion after a previous decline.
The Reserve Bank of India reported that the foreign currency assets (FCAs), the primary component of India’s forex reserves, grew by $930 million to $546.51 billion during the reviewed week. FCAs are influenced by fluctuations in major global currencies like the euro, pound sterling, and Japanese yen against the US dollar.
Additionally, India’s gold reserves also saw a slight increase, rising by $24 million to $105.23 billion in the same reporting period. The country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $3 million to $18.626 billion, while its reserve tranche position with the IMF rose by $7 million to $4.793 billion.
India had achieved a record high of $728.494 billion in foreign exchange reserves by the week ending February 27 this year. However, geopolitical tensions in the Middle East led to pressure on the rupee, prompting RBI interventions through dollar sales, resulting in subsequent declines in reserves.
Prime Minister Narendra Modi, amidst global uncertainties, has been urging citizens since May 11 to conserve foreign exchange by minimizing non-essential overseas travel, reducing fuel consumption, and postponing gold purchases for a year. The RBI continues to monitor foreign exchange market developments and intervenes as necessary to maintain orderly market conditions, emphasizing a non-specific exchange rate policy.
