Forex Update: India’s Foreign Exchange Reserves Rise for Seventh Week, Hit Near 22-Month High of $623 Bn

India’s foreign exchange reserves rose for a seventh straight week and stood at a near 22-month high of $623.20 billion as of December 29, according to the latest RBI data. In the previous reporting week, the overall reserves had increased by $4.471 billion to $620.441 billion.

The reserves rose by $2.76 billion for the reported week after increasing by a total of $30.12 billion in the prior six weeks.

In October 2021, the country’s forex kitty had reached an all-time high of $645 billion. 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.

For the week ended December 29, the foreign currency assets, a major component of the reserves, increased by $1.869 billion to $551.615 billion, as per the data from the Reserve Bank of India (RBI).

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.

Gold reserves were up by $853 million to $48.328 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by $38 million to $18.365 billion, the apex bank said.

India’s reserve position with the IMF was down by $2 million to $4.892 billion in the reporting week, the apex bank data showed.

(With inputs from agencies)