India's Foreign Exchange Reserve showed significant growth for the second consecutive week. In the week ending July 31, the country's foreign exchange reserves increased by $10.512 billion (equivalent to 1 lakh crore rupees) and reached $692.866 billion (approximately 66.09 lakh crore rupees). This was reported in data published by the Reserve Bank of India (RBI) on Friday.
In the previous reporting period, the foreign exchange reserve also grew, increasing by $6.118 billion (about 58,360 crore rupees) to reach $682.354 billion (approximately 65.09 lakh crore rupees).
Despite the recent increase, India's foreign exchange reserve is still below the record level of $728.494 billion (about 69.49 lakh crore rupees) recorded in the week ending February 27. After February, the Reserve Bank of India had to intervene in the foreign exchange market due to escalating conflicts in the Middle East and pressure on the rupee. Due to dollar sales, the country's foreign exchange reserves saw a decline over several weeks.
The Foreign Currency Assets (FCA), which constitute the largest share of the total foreign exchange reserve, also saw a substantial increase this week. According to RBI data, FCAs increased by $8.75 billion (approximately 83,467 crore rupees) to reach $564.68 billion (approximately 53.87 lakh crore rupees).
Although the value of FCAs is quoted in dollars, it includes other major foreign currencies such as the euro, pound sterling, and yen. Consequently, changes in the exchange rates of these currencies also affect the value of FCAs.
According to weekly data, the value of India's gold reserves rose by $1.685 billion (approximately 16,073 crore rupees) to reach $104.743 billion (approximately 9.99 lakh crore rupees). Additionally, Special Drawing Rights (SDRs) increased by $48 million (approximately 458 crore rupees) to reach $18.666 billion (approximately 1.78 lakh crore rupees).
India's reserve position in the International Monetary Fund (IMF) also slightly increased, rising by $28 million (approximately 267 crore rupees) to reach $4.778 billion (approximately 45,578 crore rupees).
The RBI and the government initiated a series of measures last month to increase the inflow of foreign currency into the country, including steps related to FCNR(B). Reports indicate that thanks to these measures, about $32 billion (approximately 3.05 lakh crore rupees) in foreign currency inflow entered the country. The two-week growth led to an increase in India's total foreign exchange reserves by $16.63 billion (approximately 1.59 lakh crore rupees). Nevertheless, the current level remains approximately $35.628 billion (about 3.40 lakh crore rupees) below the record figure from February.
