Now Reading: India’s forex reserves jump $10.5 bn to $692.87 bn
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India’s forex reserves jump $10.5 bn to $692.87 bn
India's foreign exchange reserves rose by $10.51 billion to $692.87 billion for the week ended July 31, the RBI said on Friday. Foreign currency assets, the largest component, climbed $8.75 billion to…
The Story in Brief
India's foreign exchange reserves rose by $10.51 billion to $692.87 billion for the week ended July 31, the RBI said on Friday. Foreign currency assets, the largest component, climbed $8.75 billion to $564.68 billion, while gold reserves increased $1.68 billion to $104.74 billion. The reserves had hit an all-time high of $728.49 billion in February before the West Asia conflict triggered weeks of decline as the RBI sold dollars to defend the rupee.
The central bank and government had launched measures last month, including the FCNR(B) scheme, to attract forex inflows. The country has received $32 billion under these schemes, reports say. India's reserve position with the IMF also improved by $28 million to $4.78 billion. The previous week, reserves had increased by $6.12 billion to $682.36 billion.
The Indian Opinion
The usual hot-take merchants will call this a vindication of the government's FCNR(B) scheme, while ignoring that the $32 billion received so far is barely a fraction of the reserves. Others will pretend this surge erases the memory of the $728 billion peak lost to West Asia turmoil. Neither spin respects the mix of RBI intervention, gold price moves, and dollar weakness that produced this number. Watch if the rupee stays stable near 83.50 or slides again next week, that will reveal whether the reserves are merely a cushion or a genuine firewall.
Source: rediff.com
This story was synthesised by AI from the source linked above.
