Forex reserves rose by $1.05 billion to $630.607 billion for the week ended January 31, RBI data reported.
The overall reserves had increased by $5.574 billion to $629.557 billion in the previous week. Forex reserves had reached an all-time high of $704.885 billion in September last year.
The country's gold reserves rose by $1.242 billion to $70.893 billion during the week. SDRs went up by $29 million to $17.889 billion, the apex bank said.
The country's reserve position with the IMF was down by $14 million at $4.141 billion in the reporting week.
The RBI bought another 8 tonnes of gold in November 2024, as Central banks around the world continued their buying spree with a collective purchase of 53 tonnes of the precious metal during the month, according to the latest World Gold Council (WGC) report.
The RBI, like all other central banks, has been buying gold as a safe haven. The policy of holding gold is primarily meant to hedge against inflation and to reduce foreign currency risks, especially in times of uncertainty triggered by geopolitical tensions.
The RBI uses the forex reserves to control the volatility in the rupee that results as hot money from the stock market flows out when foreign investors sell shares.
On the other hand, a nine-member Working Group has been constituted by the Central Bank to carry out a detailed study of trading and settlement timing of financial markets.
During the last few years, several developments that have taken place comprise increased electronification of trading, availability of Forex and certain interest rate derivative markets on a 24X5 basis, increased participation of non-residents in domestic financial markets and availability of payment systems on a 24X7 basis.
The working group will be composed of different stakeholders, and it is supposed to present its report by April 30 this year.
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