India’s foreign exchange (Forex) reserves stood above $700 billion for the second-consecutive week, data from the Reserve Bank of India (RBI) showed on Friday. The foreign reserves stood at $701.18 billion as of October 4, a drop of $3.71 billion from the previous week, according to the RBI’s weekly bulletin.
The country’s Forex reserves of over $700 billion are at an all-time high and the fourth-largest in the world. Forex rose nearly $35 billion in the earlier seven weeks. As per the Weekly Statistical Supplement released by the RBI, Foreign Currency Assets (FCAs) dropped by $3.51 billion to $612.6 billion.
Gold reserves decreased by $40 million to $65.76 billion. Special Drawing Rights (SDRs) also saw a marginal dip by $123 million to stand at $18.43 billion. The country’s reserve position in the International Monetary Fund (IMF) witnessed a marginal decrease of $71 million at $4.3 billion.
Despite geo-political uncertainties, the investors’ confidence remained intact in India’s growth story as last week, the country’s foreign exchange reserves surpassed $700 billion for the first time, reaching $704.89 billion. The Forex surged $12.59 billion, which is the largest weekly rise since mid-July 2023.
The country has joined the ranks of three other countries – China, Japan, and Switzerland – which have crossed the $700 billion threshold in reserves. Foreign inflows into the country this year have crossed $30 billion. Looking ahead, India’s Forex reserves are projected to grow further.
The strong Forex will boost its economic growth trajectory by strengthening its position internationally, drawing in foreign investments, and promoting domestic trade and industry. According to industry experts, strengthened Forex and a strong monetary policy stance are creating confidence among trade and industry and attracting foreign investments amid geopolitical vulnerabilities.