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India's foreign exchange reserves rose by USD 4.698 billion in the week that ended September 12 to USD 702.966 billion, marking the third consecutive weekly increase, the Reserve Bank of India (RBI) said in its latest 'Weekly Statistical Supplement.'
The forex reserves touched the most-awaited USD 700 billion mark this week. For the reported week, India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 587.014 billion, increasing by USD 2.537 billion. The RBI data showed that the gold reserves currently amount to USD 92.419 billion, witnessing a jump of USD 2.12 billion. After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra said the foreign exchange kitty was sufficient to meet 11 months of the country's imports. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively increased by about USD 53 billion, according to data. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)
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