India Forex Reserves Increase to $695 Billion

India’s foreign exchange reserves rose by $1.49 billion to $695.11 billion in the week ended August 15, latest RBI data showed.

The increase was led by a $1.92-billion jump in foreign currency assets, which

stood at $585.90 billion. In contrast, gold reserves fell by $493 million to $85.67 billion.

The RBI said special drawing rights (SDRs) rose by $41 million to $18.78 billion.

India’s reserve position with the International Monetary Fund (IMF) inched up by $15 million to $4.75 billion in the latest reporting week. In the previous reporting week, reserves had increased by $4.75 billion to $693.62 billion.

The Reserve Bank of India (RBI) intervenes in the forex market as part of its liquidity management measures,

including selling dollars, to curb sharp depreciation in the rupee. The central bank maintains that such interventions are aimed solely at ensuring orderly market conditions by containing undue volatility in the exchange rate, without adhering to any fixed target or band.

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