India’s Forex Reserves Hit Record High Of $692.3 Billion

India’s Forex Reserves Hit Record High Of $692.3 Billion (Representative Image)

In a positive development, India’s foreign exchange reserves have reached a new record of $692.296 billion. Thus, increasing by $2.838 billion during the week ending September 20, revealed data released by the Reserve Bank of India (RBI) on Friday.

According to RBI’s latest data India’s foreign currency assets (FCA), which form the largest component of these reserves, amount to $605.686 billion. Additionally, the gold reserves are valued at $61.988 billion.

As per the estimates, India’s forex reserves are now adequate to cover nearly a year’s worth of projected imports. In 2023 alone, India has added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion experienced in 2022.

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Earlier, just last week, the reserves stood at $689.458 billion. Thus, marking a total increase of approximately $69 billion since the beginning of the year. This substantial buffer of foreign exchange reserves helps protect domestic economic activity from global shocks.

Meanwhile, a decade ago, the Indian Rupee was one of Asia’s most volatile currencies, but it has since transformed into one of the most stable, reflecting India’s growing economic strength and the RBI’s effective management strategies.

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(With Inputs From ANI)

Dikshaa Puri