Mumbai, Aug 14 (IANS) India’s foreign exchange reserves rose sharply by $14.136 billion during the week ended August 7, crossing the $707 billion mark, driven by a significant increase in foreign currency assets and gold reserves, according to data released by the Reserve Bank of India (RBI) on Friday.
In rupee terms, the country’s reserves expanded by Rs 1.19 lakh crore during the reporting week to Rs 67.32 lakh crore, underscoring the strength of India’s external sector position.
The rise was led by an increase in foreign currency assets (FCAs), which constitute the largest share of the country’s forex reserves. FCAs climbed by $9.946 billion to $574.625 billion during the week.
Gold reserves also witnessed a substantial increase, rising by $3.995 billion to $108.738 billion.
The value of Special Drawing Rights (SDRs) with the International Monetary Fund increased by $79 million to $18.745 billion.
Meanwhile, India’s reserve position with the International Monetary Fund rose by $116 million to $4.894 billion.
With the latest increase, the country’s forex reserves have grown by $15.894 billion since the end of March 2026.
On an annual basis, reserves have expanded by $13.384 billion, reflecting continued strength in external balances and capital inflows.
The rise in reserves provides an additional buffer against external shocks and helps support the stability of the rupee amid fluctuations in global financial markets and commodity prices.
Foreign exchange reserves, managed by the RBI, comprise foreign currency assets, gold holdings, SDRs and the reserve tranche position with the IMF, and are closely watched as an indicator of a country’s ability to meet external obligations and manage currency volatility.
Meanwhile, the value of gold reserves increased by $1.685 billion to $104.743 billion during the week ended July 31, the RBI said.
For the same period, foreign currency assets, a major component of the reserves, increased by $8.750 billion to $564.680 billion.
–IANS
pk