India’s foreign exchange (forex) reserves have hit a fresh all-time high of $670.857 billion, surging $4 billion during the week ended July 19, according to the latest RBI data released on Friday. The overall reserves had jumped $9.699 billion to an all-time high of $666.854 billion in the week ended July 12.
The RBI’s gold reserves rose $1.329 billion to $59.992 billion during the week.
Sanjeev Agrawal, president of the PHD Chamber of Commerce and Industry, said, “India’s strong stance despite geopolitical uncertainties, prudent policy measures and vigilant monetary policy stance, have led the forex reserves to reach the new all-time high at the level of $670 billion (as on July 19, 2024).”
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, he added.
For the week ended July 19, India’s foreign currency assets, a major component of the reserves, increased by $2.578 billion to $588.048 billion, the RBI data released on Friday showed.
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.
The special drawing rights (SDRs) were up by $95 million to $18.207 billion, according to the latest RBI data.
India’s reserve position with the IMF were unchanged at $4.610 billion in the reporting week, the apex bank data showed.
