India's forex reserves increased by $4 billion to $598.89 billion for the week ended September 1, according to data by the Reserve Bank of India released on Friday, September 8. The increase comes after the forex reserves registered fall for two straight weeks. In the previous week (ended August 25), the total reserves fell $30 million to $594.9 billion.
As per the Weekly Statistical Supplement released by the central bank, for the same period, the foreign currency assets rose $3.4 billion to $530.69 billion.
The RBI data further showed that the gold reserves also followed suit, and were up by $584 million to $44.939 billion for the week, while Special Drawing Rights or SDRs, the international reserve assets by the International Monetary Fund or IMF to supplement the official reserves of its member countries, were up by $1 million.
India's reserve position with the IMF rose $12 million to over $5 billion for the week ended September 1.
In October 2021, India's forex reserves reached a record high of $645 billion. However, it has since fallen due to central bank's deployment of kitty to defend the depreciation of rupee amid global pressures. The central bank's often intervenes to preserve orderly market conditions by means of volatility mitigation in exchange rates.
