Forex kitty jumps $12.42 billion to all-time high of $729.3 billion | Economy & Policy News

India’s forex reserves jumped $12.422 billion to a new all-time high of $729.328 billion during the week ended August 21, the RBI said on Friday.

In the previous reporting week, the kitty had increased $9.905 billion to $716.907 billion.

The previous all-time high had stood at $728.494 billion was attained during the week ended February 27 this year, right before the onset of the Middle East conflict. Geopolitical tensions led to several weeks of a drop as the rupee and the RBI had to intervene in the forex market through dollar sales.

For the week ended August 21, foreign currency assets, a major component of the reserves, increased $9.482 billion to $591.333 billion, the central bank’s data showed.

Expressed in dollar terms, foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in foreign exchange reserves.

It can be recalled that the central bank and the government had last month launched a series of measures, including the FCNR(B), to attract more forex flows into the country. The country has so far received $72 billion under the concessional swap measures.

Value of gold reserves increased $2.801 billion to $114.218 billion during the week, the RBI said.

The special drawing rights (SDRs) were up by $112 million at $18.852 billion, the apex bank said.

India’s reserve position with the IMF was also up $26 million to $4.925 billion at the end of the reporting week, according to the apex bank’s data.