India’s forex reserves declined $4.8 billion to $670.119 billion for the week ended August 9, according to the latest RBI data. In the previous reporting week, the country’s foreign exchange reserves had increased $7.533 billion to an all-time high of $674.919 billion.
For the week ended August 9, foreign currency assets, a major component of the reserves, decreased by $4.079 billion to $587.96 billion, the data released on Friday showed.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Gold reserves declined by $860 million to $59.239 billion during the week. The special drawing rights (SDRs) were up by $121 million to $18.282 billion, according to the RBI data.
India’s reserve position with the IMF increased by USD 18 million to USD 4.638 billion in the reporting week, the central bank data showed.
Sanjeev Agrawal, president of PHD Chamber of Commerce and Industry, said
India’s robust standing amidst global economic headwinds and uncertain geo-political scenario, backed by strategic policy measures and vigilant monetary policy stance, have led the FOREX to reach the level of $670 billion (as on August 9, 2024).
“Going ahead, this will boost India’s economy on higher growth trajectory, improving India’s global standing, attracting foreign investments, and bolstering domestic trade and industry,” he said.
Given the nation’s significant foreign exchange reserves, the RBI will have greater flexibility in managing currency and monetary policy, said Agrawal.
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