Now Reading: India’s forex reserves surge $10.5 billion to $692.87 billion
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India’s forex reserves surge $10.5 billion to $692.87 billion
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. The increase follows a $6.12 billion gain the previous week.…
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. The increase follows a $6.12 billion gain the previous week. The reserves had hit an all-time high of $728.49 billion in February before the West Asia conflict, which forced the RBI to sell dollars to support the rupee.
Foreign currency assets rose $8.75 billion to $564.68 billion. Gold reserves increased $1.68 billion to $104.74 billion. The government and RBI had launched measures including the FCNR(B) scheme, attracting $32 billion so far, reports say. India's IMF position also rose $28 million to $4.78 billion.
The Indian Opinion
The rebound in forex reserves will be cheered, but it is still $35.6 billion below February's peak. Some narratives hype this as an Indian economic miracle, yet the recovery is partly due to temporary dollar inflows from the FCNR(B) scheme and valuation gains on non-dollar assets. The real test is whether reserves can surpass the February high without fresh crisis-driven outflows. That number will settle the story.
Sources (2): rediff.com, thehindu.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
