India’s Foreign Exchange Reserves Hit Record $785.71 Billion This Week
India’s foreign exchange reserves have surged to an unprecedented $785.71 billion, setting a new lifetime high and representing a record weekly gain.
Photograph: Willy Kurniawan/Reuters
Key Points
- India’s foreign exchange reserves reached a new height of $785.71 billion, reflecting a record weekly rise of $44.9 billion.
- The surge is linked to the Reserve Bank of India’s concessional forex‑swap programme, which has drawn more than $136 billion in additional inflows.
- Foreign‑currency assets, the largest slice of the reserves, climbed by $47.5 billion to $648.17 billion.
- Gold holdings fell by $2.59 billion to $113.82 billion during the period, while special drawing rights decreased modestly to $18.81 billion.
- The reserves had slipped earlier due to the West Asian conflict and RBI interventions aimed at supporting the rupee.
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India’s forex reserves jumped by a record $44.9 billion to a new lifetime high of $785.71 billion during the week ending September 4, the RBI announced Friday.
In the preceding reporting week, total reserves rose $11.47 billion to another all‑time peak of $740.8 billion.
Factors Driving the Surge
The decline in the foreign‑exchange heap began when the war in West Asia started, pressuring the rupee and prompting the RBI to inject forex by selling dollars. Since the RBI introduced its concessional forex‑swap scheme in June, however, the balance sheet reversed, generating more than $136 billion in fresh inflows.
Components of the Reserves
During the week closed on September 4, foreign‑currency assets grew by $47.5 billion, bringing the figure to $648.17 billion – the principal element of the total stock.
Broader composition includes gains from movements against non‑U.S. currencies such as the euro, pound and yen. Gold reserves slipped $2.59 billion to $113.82 billion, while special drawing rights fell slightly to $18.81 billion.
Additionally, India’s reserve position with the IMF rose by $2 million, now standing at $4.92 billion at month‑end.