India's Forex Reserves Hit New Record Of $657 Billion
The forex kitty rose by $5.16 billion over the previous reporting week, RBI data showed.
India's foreign exchange reserves reached an all-time high of $657.1 billion for the week-ended July 5, the Reserve Bank of India data showed on Friday. The forex kitty rose by $5.16 billion over the previous reporting week.
The forex stock had recovered after hitting a low of $524.5 billion in October 2022, as the central bank replenished its kitty amid solid overseas inflows.
Foreign investors have pumped in Rs 1.09 lakh crore into the country's debt and equity markets so far this year, according to data from the National Securities Depository Ltd. The capital flow has largely gone into the domestic debt market, while equities has seen tepid inflows.
For the week-ended July 5, foreign currency assets—a major component of the reserves—declined by $4.2 billion to $577 billion, RBI data showed.
In dollar terms, foreign currency assets include the effect of the appreciation or depreciation of non-US units like the euro, pound and yen held in foreign exchange reserves.
Gold reserves increased by $904 million to $57.4 billion during the week.
Last month, RBI Governor Shaktikanta Das said that the central bank is focused on building robust buffers of foreign currency reserves through its intervention in the dollar-rupee currency market.
"It's our prime focus to build up a strong umbrella in the form of substantial quantum of forex reserves, which will help us when the cycle turns or when it rains heavily," Das said.
