India’s foreign exchange reserves remain above $700 billion
Mumbai Mumbai: India’s foreign exchange reserves remained above $700 billion for the second consecutive week, according to data released by the Reserve Bank of India (RBI) on Friday. According to the RBI’s weekly bulletin, the foreign exchange reserves stood at $701.18 billion on October 4, down by $3.71 billion from the previous week. The country’s foreign exchange reserves are over $700 billion, the highest ever and the fourth largest in the world. The foreign exchange increased by about $35 billion in the last seven weeks. According to the weekly statistical supplement released by the RBI, foreign currency assets (FCA) declined by $3.51 billion to $612.6 billion.
Gold reserves fell by $40 million to $65.76 billion. Special drawing rights (SDRs) also saw a marginal decline of $123 million to $18.43 billion. The country’s reserve position at the International Monetary Fund (IMF) saw a marginal decline of $71 million to $4.3 billion. Despite geopolitical uncertainties, investors remained confident of India’s growth story as the country’s foreign exchange reserves crossed $700 billion for the first time last week, reaching $704.89 billion.
Forex inflows rose by $12.59 billion, the biggest weekly increase since mid-July 2023. The country has joined the ranks of three other countries – China, Japan and Switzerland – that have crossed the $700 billion mark in reserves. Foreign inflows into the country have crossed $30 billion this year. Looking ahead, India’s foreign exchange reserves are projected to rise further. Strong foreign exchange will boost its economic growth momentum by strengthening its position internationally, attracting foreign investment and boosting domestic trade and industry. According to industry experts, strong forex sentiment and a robust monetary policy stance are building confidence among business and industry and attracting foreign investments amid geopolitical vulnerabilities.
