India’s previous forex reserve high of $728.494 billion was recorded in the week ended February 27, before the onset of the Middle East conflict. The ensuing geopolitical tensions triggered several weeks of declines as the rupee came under pressure and the RBI stepped in with dollar sales to support the currency.
Foreign currency assets, the largest component of India’s reserves, drove the latest increase, rising by $9.482 billion to $591.333 billion during the week.
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Gold reserves also contributed significantly, climbing by $2.801 billion to $114.218 billion.
It may be recalled that the central bank and the government last month rolled out a series of measures, including those relating to FCNR(B) deposits, to boost foreign exchange inflows into the country. So far, these concessional swap measures have attracted $72 billion in forex flows.
Special drawing rights (SDRs) rose by $112 million to $18.852 billion, while India’s reserve position in the International Monetary Fund (IMF) increased by $26 million to $4.925 billion.
The latest rise takes India’s reserves $38.221 billion above their end-March level and $38.608 billion higher than a year earlier, according to RBI data. India’s reserve position with the IMF was also up $26 million to $4.925 billion at the end of the reporting week, according to the apex bank’s data. (With input from agencies)