India’s Forex Reserves Swell by $2.91 Billion to $564.06 Billion; Jump For Fifth Straight Week

Rising for the fifth consecutive week, India’s forex reserves increased by $2.91 billion to $564.06 billion for the week ended December 9, according to the latest data from the Reserve Bank of India (RBI). In the previous week, the reserves had jumped $11 billion to $561.16 billion.

The country’s foreign exchange kitty had reached an all-time high of $645 billion in October 2021. Till recently, the reserves had been declining as the central bank deployed the reserved to defend the rupee amid pressures caused majorly by global developments.

RBI Governor Shaktikanta Das recently said India’s foreign exchange reserves can pay for almost nine months’ worth of imports for 2022–23.

Foreign currency assets (FCA), a major component of the overall reserves, increased by $3.141 billion to $500.125 billion during the week to December 9, according to the Weekly Statistical Supplement released by the 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. Gold reserves decreased by $296 million to $40.729 billion.

The special drawing rights (SDRs) jumped by $61 million to $18.106 billion, the apex bank said.

The country’s reserve position with the International Monetary Fund (IMF) was also up by $2 million to $5.11 billion in the reporting week, the data showed.

On Friday, the rupee pared its early losses to close almost flat at 82.75 against the US currency supported by falling crude oil prices and forex inflows amid concerns over rising interest rates and inflation. Receding crude oil prices and forex inflows into capital markets helped the local unit cut losses and touch a high of 82.73 on Friday during the day.

(With Inputs From PTI)

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