India’s gold reserves increase by $499 million, while its forex reserves rise by $2.6 billion to $586 billion

Based on the most recent RBI statistics, India’s foreign currency reserves increased by $2.579 billion to $586.111 billion in the week that ended on October 27. The total reserves decreased by $2.363 billion to $583.532 billion over the previous reporting week.

The nation’s foreign reserves hit an all-time high of $645 billion in October 2021. The reserves suffered as the central bank utilized its foreign exchange reserves to support the rupee against pressure brought on mostly by events that have occurred globally since last year.

The RBI’s Weekly Statistical Supplement shows that for the week ending October 27, foreign currency assets—a significant part of reserves—rose by $2.303 billion to $514.504 billion.

The impact of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves’ appreciation or depreciation is included in the foreign currency assets, which are expressed in terms of dollars. During the week, gold reserves increased by $499 million to $45.923 billion, according to the RBI.

According to the apex bank, the value of the special drawing rights (SDRs) decreased by $15 million to $17.91 billion. According to central bank statistics, India’s reserve position with the IMF decreased by $208 million to $4.773 billion during the reporting week.

The executive director of Finrex Treasury Advisors LLP and head of treasury, Anil Kumar Bhansali, stated: “The rupee closed at its lowest at 83.2850 with a range of 12 paise during the entire week.” On October 27, 2023, a week after the $5 billion swap matured and the RBI purchased those dollars to boost its reserves, the foreign exchange reserves grew by $2.579 billion.

Regarding the native currency, he said that while the RBI sells and other parties purchase dollars next week, the rupee is anticipated to stay in the same range of 83 to 83.35. “We anticipate a range breakout as soon as possible.”