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India's foreign exchange reserves have reached an all-time high. Foreign exchange reserves increased by $2.98 billion in the week ended April 5. With this increase, the country's foreign exchange reserves reached a new all-time high of $648.56 billion. The Reserve Bank of India (RBI) has released this data on foreign exchange reserves on Friday, April 12, 2024.
Foreign exchange reserves are at an all-time high
In the last trading week, the country's foreign exchange reserves increased by $ 2.95 billion to $ 645.58 billion, which is the highest level till date. Earlier in September 2021, the country's foreign exchange reserves were $ 642.45 billion, which is the highest level till date.
According to Reserve Bank of India data, foreign exchange assets, a key part of foreign exchange reserves, increased by $549 million to $571.17 billion in the week ended April 5. Foreign currency assets in relation to the dollar include the impact of fluctuations in non-US currencies such as the euro, pound and yen held in foreign exchange reserves.
The Reserve Bank said that the value of gold reserves increased by $ 2.39 billion to $ 54.56 billion during the week under review. The Reserve Bank said special drawing rights (SDRs) rose by $24 million to $18.17 billion. According to the Reserve Bank, India's reserve deposits with the International Monetary Fund (IMF) also increased by $9 million to $4.669 billion in the week under review.
Market intervention through liquidity management
The Reserve Bank of India generally intervenes in the market from time to time through liquidity management including sale of dollars to prevent a sharp fall in the rupee. The Central Bank closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by controlling excessive volatility in the exchange rate, without reference to any pre-determined target level or band.