India’s foreign exchange reserves rise by $4.5 billion to $674.7 billion

NEW DELHI: India’s foreign exchange reserves grew by $4.546 billion, reaching $674.664 billion during the week ending 16th August, just below their all-time high of $674.919 billion, as reported by the Reserve Bank of India (RBI).

In 2024, India’s foreign exchange reserves have increased by around $45-50 billion. This significant reserve serves as a buffer, protecting India’s economy from global financial shocks.

The latest RBI data shows that the largest component, foreign currency assets (FCA), rose by $3.609 billion to $591.569 billion. Gold reserves also increased by $865 million, reaching $60.104 billion. Currently, India’s reserves are sufficient to cover over 11 months of projected imports.

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The RBI monitors the foreign exchange markets and intervenes only to maintain stability and prevent excessive volatility in the exchange rate.