Mumbai, 4 July (IANS). The data released by the Reserve Bank of India (RBI) on Friday stated that the country’s foreign exchange reserves have increased to $ 700 billion.
The central bank reported that the country’s foreign exchange reserves have increased by $ 4.8 billion to $ 702.78 billion in the week ended June 27, which was $ 697.93 billion last week.
This is the first time in nine months when India’s foreign exchange reserves have gone above the $ 700 billion levels. Last time, the foreign exchange reserves reached $ 704.88 billion at the end of September 2024, the highest level ever.
The fresh growth occurred mainly due to a rapid increase in foreign exchange assets, which has increased by $ 5.75 billion to $ 594.82 billion.
Forex assets are a large part of the total foreign exchange reserves and include major currencies such as euros, pounds and yen.
However, the price of gold reserves during the week stood at $ 84.5 billion. At the same time, the price of the country’s special withdrawal rights (SDR) increased by $ 15.8 million to $ 18.83 billion.
The RBI actively manages the foreign exchange market to maintain the value of the rupee and prevent excessive fluctuations.
However, its purpose is not to create a certain exchange rate, but it intervenes when necessary to prevent excessive instability.
This is usually done through liquidity management, including a US dollar sales when needed.
Additionally, according to data compiled by the RBI, the funds sent by Indians working abroad in the country registered a 14 percent increase in FY 2024-25 and it has been a record of $ 135.46 billion.
-IANS
ABS/