India forex reserves climb to USD 682.35 billion

India’s foreign exchange reserves increased by USD 6.118 billion to USD 682.354 billion during the week ended July 24, according to data released by the Reserve Bank of India (RBI) on Friday.

In the previous reporting week, the country’s overall forex reserves had risen by USD 1.08 billion to USD 676.237 billion.

India’s forex reserves had touched an all-time high of USD 728.494 billion during the week ended February 27 this year before the onset of the Middle East conflict. The conflict led to several weeks of decline in reserves as the rupee came under pressure and the RBI intervened in the foreign exchange market through dollar sales.

Prime Minister Narendra Modi has also made multiple public appeals starting May 11 to countrymen to conserve forex by cutting down on foreign travel, limiting fuel use and refraining from gold buys for a year.

For the week ended July 24, foreign currency assets (FCAs), the largest component of the forex reserves, increased by USD 4.873 billion to USD 555.929 billion, RBI data showed.

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

The central bank and the government had launched a series of measures to attract higher forex inflows into the country last month, including the FCNR(B) measure. According to reports, the country has so far received USD 32 billion under these schemes.

The value of gold reserves increased by USD 1.308 billion to USD 103.058 billion during the reporting week, the RBI said.

Special Drawing Rights (SDRs) declined by USD 53 million to USD 18.617 billion, according to the central bank.

India’s reserve position with the International Monetary Fund (IMF) also fell by USD 11 million to USD 4.75 billion at the end of the reporting week, RBI data showed.