Record jump of $45 bn takes forex reserves to new lifetime high of $786 bn

In the previous reporting week, the overall reserves increased $11.475 billion to a new all-time high of $740.803 billion.

The kitty had been declining since the start of the conflict in West Asia earlier this year, as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales.

However, the reserves started increasing since the RBI announced concessional forex swap initiatives in June this year amid a sharp depreciation in the local currency. The move has yielded over $136 billion in new flows.

For the week ended September 4, foreign currency assets, a major component of the reserves, increased $47.498 billion to $648.168 billion, the central bank’s data showed.

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