India's foreign exchange reserves witnessed a notable surge, registering an increase of USD 1.634 billion and reaching USD 618.937 billion for the week concluding on January 12, as reported by the Reserve Bank of India (RBI) on Friday.
In the preceding week, the overall reserves experienced a significant decline, contracting by USD 5.89 billion to USD 617.3 billion. It's worth noting that India's forex reserves had achieved an unprecedented pinnacle of USD 645 billion in October 2021. However, these reserves faced a setback as the central bank utilized them to safeguard the rupee against challenges primarily arising from global developments since the previous year.
The data for the week ending January 12 revealed that the foreign currency assets, a substantial component of the reserves, saw a noteworthy increase of USD 1.859 billion, reaching USD 548.508 billion. Foreign currency assets, expressed in dollar terms, consider the impact of fluctuations in the value of non-US units such as the euro, pound, and yen held in the foreign exchange reserves.
Simultaneously, gold reserves experienced a decline of USD 242 million, standing at USD 47.247 billion for the week, according to the RBI. On the other hand, the Special Drawing Rights (SDRs) observed a positive movement, rising by USD 12 million to USD 18.31 billion.
The RBI data further disclosed that India's reserve position with the International Monetary Fund (IMF) exhibited an increase of USD 6 million, reaching USD 4.872 billion during the reporting week. This data reflects the dynamic nature of India's foreign exchange reserves and their response to various economic factors on both domestic and global fronts.
(With Agency Inputs)
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