Update on Foreign Exchange: India’s Reserves Increase by $4.47 billion to $620.44 billion

According to the most recent RBI statistics, India’s foreign exchange reserves increased for a third straight week in the week ended December 22, adding $4.471 billion to bring the total to $620.441 billion. The amount increased to $615.971 billion, the most in a week, from $9.112 billion the week before the last reporting week.

The total reserves had increased to $606.859 billion the previous week, an increase of $2.816 billion.

The FX kitty hit an all-time high of $645 billion in October 2021. The reserves are just $25 billion below the high, at approximately $620 billion. The reserves suffered as a result of the central bank using the kitty to protect the rupee from pressure brought on mostly by events that have occurred globally since last year. As to the central bank’s figures, the total amount of foreign exchange reserves added so far this year amounts to $57.634 billion.

According to Reserve Bank figures, the foreign currency assets—the single biggest component of the reserves—rose by $4.898 billion to $549.747 billion for the week that concluded on December 22. The monetary authority has increased the foreign currency assets by $51.257 billion so far this year.

The impact of non-US units like the euro, pound, and yen held in the foreign exchange reserves appreciating or depreciating is included in the foreign currency assets, expressed in terms of dollars.

The special drawing rights (SDRs) added barely $4 million to $18.327 billion during the reporting week, while gold reserves fell by $107 million to $47.474 billion, according to the apex bank.

The statistics also indicated that during the reporting week, the nation’s reserve position with the IMF decreased by $129 million to $4.894 billion.