India's foreign exchange reserves climb to record $740.8 bn
The Reserve Bank of India reported that its foreign exchange reserves rose by $11.475 bn to $740.803 bn in the week ending August 28, setting a new all-time high.
India's foreign exchange reserves hit a fresh record of $740.803 bn for the week ended August 28, according to the Reserve Bank of India. The increase of $11.475 bn follows a $12.422 bn rise the previous week, which had already broken the earlier high of $728.494 bn set in late February before the Middle East conflict escalated. The central bank’s concessional forex-swap initiative, introduced in June amid a sharp rupee depreciation, has attracted over $132 bn in new inflows.
Foreign-currency assets grew by $9.337 bn to $600.67 bn, while gold reserves rose $2.191 bn to $116.409 bn. Special drawing rights fell slightly by $43 million to $18.81 bn, and the IMF reserve position slipped $11 million to $4.914 bn.
Why it matters
The record reserves bolster India's ability to manage currency volatility and external shocks.
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