India’s forex reserves up $2.3 billion to touch new high of $683.9 billion

India’s forex reserves increased by $2.299 billion to a new high of $683.98 billion for the week ended August 30, the Reserve Bank of India (RBI) data showed on Friday.

For the week, foreign currency assets, a major component of the reserves, increased by $1.485 billion to $599.037 billion.

In the week ended August 23, the country’s forex reserves had surged $7.023 billion to touch a new high of $681.68 billion.

According to the Central Bank, gold reserves increased by $862 million to $61.859 billion during the week. The Special Drawing Rights (SDRs) were up by $9 million to $18.468 billion.

The record all-time high level of India’s forex reserves will create external sector resilience and boost economy across sectors, said industry experts. Moving ahead, the country’s substantial foreign exchange reserves will provide the RBI greater flexibility in monetary policy and currency management.

Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry (PHDCCI) appreciated India’s forex at a new all-time high, saying that this milestone will further strengthen the country’s external sector resilience.

“With the support of prudent policy initiatives and a vigilant monetary policy stance, the forex has reached the new all-time high record of over $683 billion (as of August 30, 2024), amidst growing geopolitical uncertainties,” Agrawal said.

Going ahead, coupled with RBI’s the robust policies and continued handholding by the government, India’s strong forex will boost economic growth trajectory by strengthening its position internationally, drawing in foreign investments, and promoting domestic trade and industry, he mentioned.

India is also the fourth largest foreign exchange reserve holder in the world, along with one of the largest FDI recipients in the world. The country has become the favourite destination for investment globally which is creating this rebounding effect for the country, according to experts.

(With inputs from IANS)