Forex reserves surge by a record USD 44.9 billion to USD 785.7 billion

New Delhi: India’s foreign exchange reserves posted a record weekly increase of USD 44.903 billion to reach an all-time high of USD 785.706 billion in the week ended September 4, Reserve Bank of India data released on Friday showed.

The surge followed an increase of USD 11.475 billion in the previous reporting week, when reserves reached USD 740.803 billion.

Follow The PSUWatch Channel on WhatsApp

Foreign currency assets accounted for the latest rise, climbing USD 47.498 billion to USD 648.168 billion. The increase more than offset a decline in the value of gold holdings.

Reserves had come under pressure following the outbreak of the West Asia conflict earlier this year, as the RBI sold dollars to support the rupee.

They began recovering after the central bank announced concessional foreign exchange swap initiatives in June amid a sharp depreciation in the currency. The measures have attracted more than USD 136 billion in fresh flows.

Follow PSU Watch on LinkedIN

Gold holdings decline in value

The value of gold reserves fell USD 2.594 billion to USD 113.816 billion during the reporting week.

Special Drawing Rights declined USD 4 million to USD 18.806 billion, while India’s reserve position with the International Monetary Fund increased USD 2 million to USD 4.916 billion.

Foreign currency assets, expressed in dollar terms, also reflect changes in the value of non-dollar currencies such as the euro, pound and yen held in the reserves.

(PSU Watch is India's Business News centre that places the spotlight on PSUs, Bureaucracy, Defence and Public Policy. 👉 Click to join our channel now: PSUWatch WhatsApp Channel. Prefer LinkedIn? Follow PSU Watch on LinkedIN. Click to stay connected on Twitter here and stay updated)