India’s foreign exchange (Forex) reserves soared by $11.02 billion to reach $561.162 billion for the week ended December 2, Reserve Bank data showed on Friday. This is the fourth consecutive week of rise in the reserves. In the previous reporting week, the overall reserves had grown by $2.9 billion to $550.14 billion. For the week ended November 11, the forex kitty had jumped by $14.72 billion in its second fastest weekly acceleration ever.
In October 2021, the country’s foreign exchange kitty had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments.
Foreign currency assets (FCA), a major component of the overall reserves, increased by $9.694 billion to $496.984 billion during the week to December 2, according to the Weekly Statistical Supplement released by the RBI on Friday.
On Wednesday, RBI Governor Shaktikanta Das said that size of forex reserves is comfortable and has increased. “We had announced a series of measures in July to enhance forex inflow. As a result, new External Commercial Borrowing (ECB) agreements have been concluded for $8.6 billion,” Das said. Forex reserve rose $2.89 billion to $550.14 billion during the week that ended November 25, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).
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.
The gold reserves increased by $1.086 billion to $41.025 billion. The Special Drawing Rights (SDRs) were down by $164 million to $18.04 billion, the apex bank said.
The country’s reserve position with the International Monetary Fund (IMF) was also down by $75 million to $5.108 billion in the reporting week, the data showed.