India’s forex reserves rise to a record high of $642.631 billion.
India’s foreign exchange reserves rose by $140 million during the week ended March 22 to touch a new lifetime high of $642.631 billion. This marks the fifth consecutive weekly increase in the country’s forex kitty.
According to data released by the Reserve Bank of India, reserves rose by $6.396 billion in the previous reporting week to $642.492 billion. The previous all-time high was $642.453 billion recorded in September 2021.
Of the latest reserve figure, foreign currency assets declined marginally by $123 million to $568.264 billion. However, gold reserves increased $347 million to $51.487 billion.
Special Drawing Rights with IMF saw a dip of $57 million to $18.219 billion for the week under review. India’s reserve position also came down by $27 million to $4.662 billion.
The continuous rise in reserves indicates RBI’s interventions to curb volatility in the currency markets amid global uncertainties. The higher reserves provide essential buffer to the economy and also help strengthen the rupee.
Experts say growing forex reserves boost investor confidence by ensuring availability of dollars. It also assists the government in meeting the country’s import needs and external debt obligations.
With depleting forex reserves a challenge for most emerging economies recently, India sustaining a record high level underscores its strong macroeconomic fundamentals and financial system stability.
