India's forex reserves rise by $964 million to $675.16 billion: RBI
Mumbai, July 17
India's foreign exchange reserves increased by $964 million to $675.16 billion for the week ended July 10, according to data released by the Reserve Bank of India on Friday.
The latest increase follows a sharp rise of $7.26 billion in the previous reporting week, when the country's forex reserves had climbed to $674.19 billion after reversing the decline recorded earlier.
According to the RBI, foreign currency assets (FCAs), the largest component of the country's forex reserves, rose by $930 million to $546.51 billion during the week under review.
FCAs reflect the impact of changes in the value of major global currencies such as the euro, pound sterling and Japanese yen against the US dollar.
India's gold reserves also edged higher, increasing by $24 million to $105.23 billion during the reporting week.
The country's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $3 million to $18.626 billion, while its reserve tranche position with the IMF increased by $7 million to $4.793 billion.
India's foreign exchange reserves had touched an all-time high of $728.494 billion during the week ended February 27 this year.
However, escalating geopolitical tensions in the Middle East subsequently put pressure on the rupee, prompting the RBI to intervene in the foreign exchange market through dollar sales, which contributed to a decline in reserves in the following weeks.
Amid global uncertainties, Prime Minister Narendra Modi has, since May 11, urged citizens to help conserve foreign exchange by reducing non-essential overseas travel, cutting fuel consumption and postponing gold purchases for a year.
The RBI has maintained that it remains watchful of developments in the foreign exchange market and will continue to intervene whenever required to ensure orderly market conditions, while reiterating that it does not target any specific exchange rate.
— IANS
Reader Comments
The PM's call to avoid gold purchases for a year is interesting. As an Indian, I know how culturally significant gold is for weddings and festivals. But if it helps the economy, maybe we can all do our bit. However, I wish the government would also focus on making the rupee stronger through policy rather than asking citizens to change habits. 😊
$675 billion is impressive, but let's not get too comfortable. Middle East tensions could still disrupt things. The RBI is doing a decent job managing the forex market, but the real challenge is making India's exports globally competitive. We still import too much oil and gold. Need long-term thinking, not just short-term fixes.
It's good news, but I'm a bit skeptical. The RBI keeps saying it won't target a specific exchange rate, yet they're selling dollars to prop up the rupee. That's intervention by another name. Also, the PM's appeal to reduce oil consumption and gold imports feels like we're being asked to bear the burden of global volatility. Why not focus on boosting manufacturing and services exports instead? 🤔
As someone who follows economics, I appreciate the RBI's cautious approach. The $964 million rise might seem small, but it's part of a larger trend. The PM's suggestion to reduce non-essential travel is practical—I've already postponed my trip to Thailand. Every little bit helps, yaar! Let's all do our part. 🙏
Interesting data from the RBI. The increase in gold reserves (only $24 million
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