India's Forex Reserves Rise by $2.3 Billion to Record High of $683.9 Billion

India's forex reserves surge by $2.299 billion to fresh high of $683.98 billion for week ended August 30, the Reserve Bank of India data showed on Friday. In the reporting week, foreign currency assets-a key component of the overall reserves-jumped $1.485 billion to $599.037 billion.

In the week ended August 23, the country's forex reserves jumped $7.023 billion to touch a new high of $681.68 billion.

As per the Central Bank, gold reserves rose by $862 million to $61.859 billion during the week. The SDRs were up by $9 million to $18.468 billion.

This will help build external sector resilience and strengthen economic activity across sectors, said industry experts. Going forward, substantial foreign exchange reserves of the country will provide greater flexibility for the RBI in monetary policy and currency management.

Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry, hailed India's forex, which reached a new all-time high. He said the feat would lead to more strength in the external sector resilience of the country.

"With aptness of prudent policy initiatives and vigilant monetary policy stance, forex has reached the new all-time high record of over $683 billion as on August 30, 2024, amidst rising geopolitical uncertainties," said Agrawal.

Going forward, along with strong policies by RBI and continuous hand-holding by the government, strong forex will keep accelerating the economic growth trajectory for India as it improves its standing among countries, thus attracting foreign investments and boosting domestic trade and industries, he added.

On the other hand, India has now been known as the fourth largest foreign exchange reserve holder in the world, while being on the list of one of the largest recipients of FDI in the world. According to experts, it is now rising as a darling destination for investment globally; that is its rebounding effect.