India Foreign exchange reserves have reached a new all-time high. India's foreign exchange reserves increased by $2.838 billion in the week ending September 20, according to a press release issued by the Reserve Bank of India (RBI). With this, it has increased from $689.4 billion on September 13 to $692.3 billion. Central bank data showed that foreign currency assets, which form the bulk of foreign exchange reserves, rose by $2.057 billion to $605.686 billion as of September 20. It was $603.629 billion in the week ending September 13. Recently, India's foreign exchange reserves have also been supported by the major interest rate cut by the US central bank Federal Reserve.
Increase in gold reserves
RBI data also showed that the country's gold reserves have increased by $726 million. With this it became 63.613 billion dollars. Whereas in the data of September 13, it was worth 62.887 billion dollars. Gold is the second largest contributor to India's foreign exchange reserves.
special drawing rights
Two other elements contributing to foreign exchange reserves are: Special Drawing Rights (SDRs) and reserve positions with the International Monetary Fund (IMF). According to RBI data, SDRs increased by $121 million as of September 20. Due to this, it increased from the previous level of $18.419 billion on September 13 to $18.540 billion. India's reserve position with the International Monetary Fund (IMF) declined by $65 million to $4.458 billion as per the latest data filing. It was $4.523 billion in last week's figure.
understand this also
The Reserve Bank of India (RBI) intervenes in the foreign exchange market to control volatility in the Indian currency (Indian Rupee). RBI intervention leads to changes in foreign currency assets. Also, the value of foreign currencies kept as reserves increases and depreciates.
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