India’s foreign exchange reserves reached a new record high of $692.3 billion, reflecting an increase of $2.8 billion for the week ending September 20, according to the Reserve Bank of India (RBI) on Friday. This marks the second consecutive week of growth, following a rise of $223 million to $689.46 billion for the week ending September 13.
As per the Weekly Statistical Supplement released by the RBI, foreign currency assets (FCAs) rose by $2 billion to $605.6 billion. The value of these assets in dollar terms also factors in the appreciation or depreciation of non-US currencies, including the euro, pound, and yen. Additionally, gold reserves increased by $726 million, reaching $63.6 billion. Special Drawing Rights (SDRs) for the same week went up by $121 million to stand at $18.54 billion, while the reserve position in the International Monetary Fund (IMF) decreased by $66 million to $4.4 billion.
The RBI periodically intervenes in the foreign exchange market through liquidity management, including the sale of dollars, to prevent a significant depreciation of the rupee. It closely monitors foreign exchange markets and intervenes only to ensure orderly conditions and mitigate excessive volatility in exchange rates, without adhering to a specific target level or band.
