India’s foreign exchange reserves surge to record $785.7 billion

India’s foreign exchange reserves have surged to a record $785.7 billion, rising nearly $45 billion in a single week amid strong capital inflows, according to Reserve Bank of India data.

The reserves rose from $740.8 billion to $785.7 billion in the week ending September 4, marking the tenth consecutive weekly increase.

India’s reserves have increased by nearly $120 billion over the past 10 weeks, following measures introduced in June to attract more dollar inflows and strengthen the country’s balance of payments.

The RBI received $136.3 billion through the schemes between June 5 and August 31, including about $127 billion from non-resident Indian deposits.

The latest weekly increase was driven by a $47.4 billion rise in foreign currency assets to $648.2 billion. However, the value of India’s gold reserves fell by around $2.6 billion to $113.8 billion.

The RBI has also been intervening in the foreign exchange market to support the Indian rupee, which bankers said likely offset some of the impact of the strong dollar inflows.

India’s record reserve position provides the country with a substantial buffer against external economic shocks and volatility in global currency markets. (Newswire)

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