Winning Bizness Desk

Mumbai, August 30, 2024: In a significant development, the Reserve Bank of India (RBI) has announced a massive increase in the country's foreign exchange reserves, which have reached a record high of $681.68 billion in the week ended August 23. This marks a substantial gain of $7.02 billion from the previous week's $674.66 billion. The country's forex reserves have seen a remarkable surge, with an increase of $11.56 billion over the past two weeks. This significant jump brings the total forex reserve to a lifetime high, surpassing the previous record of $674.91 billion on August 2.

Gold reserves also increased

According to the RBI's weekly data, foreign currency assets, considered an important part of the currency reserves, increased by $5.98 billion to $597.55 billion. Gold reserves also saw an increase of $893 million, bringing the total gold reserve to $60.99 billion. Special Drawing Rights (SDR) and India's reserve with the International Monetary Fund (IMF) also saw gains of $118 million and $30 million, respectively. This significant boost to the country's forex reserves comes as a welcome relief amidst concerns over GDP growth. The increase in foreign exchange reserves will provide a cushion against external shocks and support the government's efforts to stabilize the economy.

Positive development for the Indian economy

The RBI's forex boost is seen as a positive development for the Indian economy, which has been facing challenges in recent times. The increase in forex reserves will help to improve the country's balance of payments position and provide a buffer against any potential external shocks. With this increase, India's forex reserves have risen by $58.48 billion in the current calendar year, from $623.20 billion to $681.68 billion. This significant gain is expected to support the government's efforts to promote economic growth and stability.