India's forex reserves climb $10.5 billion to $692.9 billion in weekly RBI data
The Reserve Bank of India (RBI) reported on Friday that the country's foreign exchange reserves increased by $10.512 billion to $692.866 billion during the week ended July 31. The central bank's weekly statistical release showed a continued recovery from the recent dip.
In the previous reporting week, reserves had already risen by $6.118 billion to reach $682.354 billion. The latest data marks a significant addition, driven largely by a rise in foreign currency assets and gold holdings.
India's forex reserves had touched an all-time high of $728.494 billion for the week ended February 27, before the onset of the West Asia conflict. That geopolitical crisis triggered several weeks of decline, as the rupee came under downward pressure. To stabilise the currency, the RBI intervened in the forex market by selling dollars, which reduced the reserve stockpile.
For the week ended July 31, foreign currency assets (FCA) — a major component of overall reserves — increased by $8.75 billion to $564.68 billion. The RBI noted that expressed in dollar terms, FCA includes the effect of appreciation or depreciation of non-US units such as the euro, pound and yen held in reserves.
Gold reserves also contributed to the weekly gain, rising by $1.685 billion to $104.743 billion. The country's Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $48 million to $18.666 billion, while India's reserve position in the IMF rose by $28 million to $4.778 billion.
The central bank and the government have been taking measures to attract foreign inflows. Last month, a series of steps were launched, including the FCNR(B) deposit scheme for non-resident Indians. Reports indicate that India has received about $32 billion under these schemes so far, which are aimed at strengthening the foreign exchange buffer.
The latest figures show a steady rebuild of reserves after the recent turbulence, providing the central bank with greater flexibility in managing currency stability and external shocks.
