Forex Update: India’s Foreign Exchange Reserves Jump $4.47 Billion to $620.44 Billion

India’s forex reserves continued to rise for the third consecutive week, adding $4.471 billion more in the week ending December 22, taking the total to $620.441 billion, according to the latest RBI data. In the previous reporting week, the kitty had swollen by $9.112 billion to $615.971 billion, making the quantum of increase one of the highest in a week.

In the week before, the overall reserves had risen by $2.816 billion to $606.859 billion.

In October 2021, the forex kitty had reached an all-time high of $645 billion. At over $620 billion, the reserves are just $25 billion off the peak. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. This takes the year-to-date addition of forex reserves to $57.634 billion, according to the central bank data.

For the week ended December 22, the foreign currency assets, which are the single largest component of the reserves, increased by $4.898 billion to $549.747 billion, according to the Reserve Bank data. In the year so far, the monetary authority has added $51.257 billion to the foreign currency assets.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

However, gold reserves declined by $107 million to $47.474 billion during the reporting week, while the special drawing rights (SDRs) were almost flat, adding just $4 million to $18.327 billion, the apex bank said.

The country’s reserve position with the IMF also declined by $129 million to $4.894 billion in the reporting week, the data showed.