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India’s Record Forex Reserve Jump Reaches USD 785.7 Billion
India keeps foreign money and gold as a financial safety cushion.
That cushion grew by nearly USD 45 billion in one week.
It reached a record USD 785.706 billion by September 4.
Most of the increase came from foreign currency assets.
The value of India’s gold reserves fell during the same week.
Special drawing rights also decreased slightly, while India’s IMF reserve position rose a little.
The Reserve Bank of India said special forex swap facilities brought in more than USD 136 billion.
These inflows also added rupees to the banking system, so the RBI used operations to manage the extra money.
The increase followed an earlier period when the rupee weakened and the RBI sold dollars to support the market.
India’s foreign exchange reserves rose by a record USD 44.903 billion in the week ended September 4.
Total reserves reached a lifetime high of USD 785.706 billion, up from USD 740.803 billion the previous week.
Foreign currency assets increased by USD 47.498 billion to USD 648.168 billion, driving most of the weekly gain.
Gold reserves declined by USD 2.594 billion to USD 113.816 billion, partly offsetting the increase.
RBI-backed concessional forex swaps mobilised more than USD 136 billion, while the resulting rupee liquidity required absorption operations.
- Who
- India and the Reserve Bank of India.
- What
- India’s foreign exchange reserves increased by USD 44.903 billion to a record USD 785.706 billion.
- Where
- India; the report was datelined Mumbai.
- When
- In the week ended September 4; the RBI data was reported on September 11.
- Why
- Concessional dollar-rupee swap facilities helped attract more than USD 136 billion in foreign currency inflows after reserves had come under pressure from the West Asia conflict and rupee weakness.
Key facts
- Total reserves
- USD 785.706 billion
- Weekly increase
- USD 44.903 billion, the largest weekly addition on record
- Previous record
- USD 740.803 billion in the week before September 4
- Foreign currency assets
- USD 648.168 billion, up USD 47.498 billion
- Gold reserves
- USD 113.816 billion, down USD 2.594 billion
- Special drawing rights
- USD 18.806 billion, down USD 4 million
- IMF reserve position
- USD 4.916 billion, up USD 2 million
- Forex swap inflows
- More than USD 136 billion mobilised through the swap facilities
Sources
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