India’s foreign exchange reserves rose by $1.68 billion to $688.94 billion in the week ended December 12, according to data released by the Reserve Bank
of India (RBI) on Friday, December 19.
The increase was primarily driven by a sharp rise in gold reserves, along with marginal gains in foreign currency assets (FCAs).
FCAs, the largest component of the country’s forex reserves, increased by $0.91 billion to $557.79 billion during the week. These assets include the impact of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves.
India’s gold reserves grew by $0.76 billion to $107.74 billion, underscoring the central bank’s continued focus on diversifying its reserve assets amid continuing global economic uncertainty.
Also read: Forex reserves swell $10.87 billion to $676.27 billion as of April 4
Meanwhile, special drawing rights (SDRs) with the International Monetary Fund (IMF) rose marginally by $0.01 billion to $18.74 billion. India’s reserve position with the IMF also edged up by $0.01 billion, reaching $4.69 billion.
The latest data highlights the RBI’s efforts to strengthen the country’s external buffer while maintaining a balanced mix of reserve assets.
Also read: RBI MPC flags growth priority, Governor Malhotra votes for rate cut as inflation stays low
