Surge in Forex Reserves: India’s Holdings Climb by $1.63 Billion, Reaching $618.9 Billion

Ira Singh
Khabar Khabaron Ki,20 Jan’24

India’s foreign exchange reserves have witnessed a substantial increase, surging by $1.634 billion to reach a new high of $618.937 billion for the week ended January 12, the Reserve Bank of India (RBI) said on Friday.The surge underscores the country’s resilience amid global economic uncertainties and highlights its robust position in the international financial landscape.

In the previous reporting week, the overall reserves had declined sharply by USD 5.89 billion to USD 617.3 billion.

Reportedly,the country’s forex kitty had reached an all-time high of USD 645 billion in October 2021. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. For the week ended January 12, the foreign currency assets — a major component of the reserves — increased USD 1.859 billion to USD 548.508 billion, the data said.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves. Gold reserves were down USD 242 million to USD 47.247 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up USD 12 million to USD 18.31 billion, the apex bank said. India’s reserve position with the IMF increased USD 6 million to USD 4.872 billion in the reporting week, the RBI data added.