India’s forex reserves jump by $4 billion to hit fresh record high of $670.857 billion: RBI

Surpassing the all-time high level achieved the previous week, India's foreign exchange (forex) reserves jumped by another $4 billion to $670.857 billion for the seven days ended July 19, the Reserve Bank of India (RBI) said on Friday.

The overall reserves had jumped by $9.699 billion to an all-time high of $666.854 billion in the week ended July 12. For the week ended July 19, foreign currency assets, a major component of the reserves, increased by $2.578 billion to $588.048 billion, the data released on Friday showed.

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Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves increased by $1.329 billion to $59.992 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by $95 million to $18.207 billion, the apex bank said. India's reserve position with the IMF were unchanged at $4.610 billion in the reporting week, the apex bank data showed.

‘’India’s strong stance despite geopolitical uncertainties, prudent policy measures and vigilant monetary policy stance, have led the forex to reach the new all-time high at the level of $670 billion (as on July 19, 2024)'', said Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry.

‘’This will propel India's economic growth on a higher trajectory, enhancing its standing internationally, making the country attractive to foreign investors, and fostering domestic trade and industry. Given, the global macroeconomic challenges, the Reserve Bank of India would have more flexibility in handling the currency and monetary policy due to the country's significantly high foreign exchange reserves'', said Sanjeev Agrawal.