MUMBAI– India’s foreign exchange reserves rose by $1.49 billion to $695.11 billion for the week ending August 15, according to data released Friday by the Reserve Bank of India (RBI).
The increase follows a sharp $4.75 billion jump the previous week, underscoring what officials say is a stable external balance position. Higher reserves provide the central bank with greater flexibility to stabilize the rupee against the U.S. dollar and manage volatility in currency markets by supplying dollars when needed.
Foreign currency assets, which make up the largest share of the reserves, increased by $1.92 billion to $585.9 billion. These assets are expressed in U.S. dollar terms and include the impact of fluctuations in other major currencies such as the euro, pound, and yen.
Gold holdings stood at $85.67 billion, reflecting a trend among central banks worldwide to boost gold reserves as a hedge against global uncertainty. The RBI’s gold holdings have nearly doubled since 2021. Special Drawing Rights with the International Monetary Fund were valued at $18.78 billion.
RBI Governor Sanjay Malhotra recently said that India’s reserves are sufficient to cover more than 11 months of goods imports and nearly 96 percent of the country’s outstanding external debt. “Overall, India’s external sector remains resilient as key vulnerability indicators continue to improve,” Malhotra said. “We remain confident of meeting our external financing requirements.”
Meanwhile, merchandise exports rose 7.29 percent in July to $37.24 billion, compared with $34.71 billion in the same month last year. Commerce Secretary Sunil Barthwal said India’s export growth — both in goods and services — continues to outpace global trade trends. Engineering goods, electronics, pharmaceuticals, chemicals, and gems and jewelry were among the top export drivers in July. (Source: IANS)
