India's foreign exchange assets surge by approximately $4.69 billion, reaching a nearly peak level of $702.9 billion.
India's foreign exchange reserves have seen a significant increase in the past few weeks, reaching a near-record high of $702.9 billion as of the week ended September 12, 2023.
According to data released by the Reserve Bank of India (RBI) on Friday, the foreign currency assets (FCAs), the largest part of the reserves, increased by $540 million to $584.47 billion in the week ended September 5. This follows a $4.03 billion jump in the week before, pushing the total reserves past the $698 billion mark.
The rise in foreign currency assets and gold reserves has contributed to the overall increase in India's foreign exchange reserves. The value of gold reserves increased by $2.1 billion to $92.42 billion. The special drawing rights (SDRs), which are a type of reserve maintained by the International Monetary Fund (IMF), also saw a slight increase by $32 million to $18.73 billion.
The strong buffer of forex reserves close to record highs will help India cushion external shocks. The forex reserves serve as a financial safety net for India, allowing the RBI to intervene in the currency market to control volatility in the rupee. The strong forex reserves will support the rupee and provide confidence to global investors.
The RBI's interventions are not intended to fix the exchange rate at a certain level, but to ensure stability during global uncertainty. The strong position of India in the international currency market, bolstered by the strong forex reserves, is particularly beneficial amid uncertain global economic conditions.
India's reserve position with the IMF also moved up by $9 million to $4.76 billion. The forex reserves have been rising steadily in recent weeks, reflecting a strengthening of India's economy and foreign currency position.
The forex reserves include major global currencies such as the euro, pound, and yen. The strong forex reserves provide a strong position for India in the international currency market. The rise in the foreign exchange reserves indicates a stabilisation and improvement in India's financial standing on the global stage.
Read also:
- Catastrophe at a U.S. Steel facility in Pennsylvania results in the loss of two lives. crucial details unveiled
- Manipulating Sympathy: Exploiting Victimhood for Personal Gain
- Prices remain a concern for the Germans
- Auto Industry Updates: Geotab, C2A, Deloitte, NOVOSENSE, Soracom, and Panasonic in Focus
