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India’s Forex Reserves Reach $740.8 Billion Amid Conflicting Weekly Figures
India keeps foreign money, gold, and other assets as a financial safety cushion.
Reports say this cushion reached a new record level.
One report gives the total as $740.8 billion for the week ending August 28.
Another gives $729.328 billion for the week ending August 21.
These are figures for different weeks, although one headline incorrectly pairs the August 21 figure with $740.8 billion.
Foreign currency assets and gold both increased in the August 28 data.
The Reserve Bank of India used special forex swap measures to attract more foreign-exchange flows.
The reports disagree on how much money those measures brought in.
India’s foreign-exchange reserves reached a reported record $740.8 billion in the week ended August 28, rising about $11.47 billion.
A separate RBI-based report lists reserves at $729.328 billion for the week ended August 21, up $12.422 billion.
Foreign currency assets rose to $600.67 billion and gold reserves to $116.41 billion by August 28.
The RBI’s concessional forex swap measures attracted reported flows ranging from $72 billion to $136.3 billion, depending on the report.
Special drawing rights and India’s IMF reserve position declined in the August 28 report, while SDRs rose in the August 21 report.
- Who
- The Reserve Bank of India and the Indian government are identified as the institutions involved.
- What
- India’s foreign-exchange reserves reportedly reached a new high, with reports citing $740.8 billion for August 28 and $729.328 billion for August 21.
- Where
- India.
- When
- The figures cover the weeks ended August 28 and August 21, with the data reported on Friday.
- Why
- The increase was associated with higher foreign currency assets, gold reserves, and foreign-exchange flows attracted through RBI swap measures.
Key facts
- August 28 reserves
- Reported at $740.8 billion, up approximately $11.47 billion during the week.
- August 21 reserves
- Reported at $729.328 billion, up $12.422 billion during the week.
- Previous record
- $728.494 billion for the week ended February 27.
- Foreign currency assets
- $600.67 billion on August 28, after rising $9.337 billion; $591.333 billion on August 21, after rising $9.482 billion.
- Gold reserves
- $116.41 billion on August 28 and $114.218 billion on August 21.
- Special drawing rights
- $18.81 billion on August 28, down $43 million; $18.852 billion on August 21, up $112 million.
- Forex swap flows
- Reports cite more than $132 billion, $136.3 billion cumulatively, or $72 billion under the concessional swap measures.
Quotes
Radhika Rao
Senior economist and executive director at DBS Bank
“USDINR, which was earlier stubbornly steady, in the face of strong FCNR inflows, has corrected sharply in recent sessions, testing below 95.0 handle to mid-94.0 due to strong intervention dollar sales and broader dollar swings.”
deccanchronicle.com
Sources
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