India's forex reserves hit new all-time high of $720B
What's the story
India's foreign exchange reserves have hit a new all-time high of $723.774 billion, according to the Reserve Bank of India (RBI). The latest data shows an increase of $14.361 billion during the week ending January 30. This comes after an increase of $8.053 billion in the previous reporting week when forex reserves had reached $709.413 billion, surpassing the previous record high of $704.89 billion achieved in September 2023.
Reserve details
Significant jump in gold reserves
The RBI's data also showed significant jump in gold reserves, which increased by $14.595 billion to $137.683 billion during the week ending January 30. However, foreign currency assets (FCAs), the largest component of India's forex reserves, slipped by $493 million to $562.392 billion during this period. FCAs are denominated in US dollars and reflect the impact of appreciation or depreciation of non-US currencies such as euro, pound sterling and Japanese yen that are held as part of India's forex reserves.
SDR and IMF
Increase in Special Drawing Rights (SDRs)
The RBI's data also showed an increase in Special Drawing Rights (SDRs), which rose by $216 million to $18.953 billion during the week under review. India's reserve position with the International Monetary Fund (IMF) also witnessed a rise of $44 million, taking it to $4.746 billion in this reporting period. SDRs are international reserve assets created by the IMF to supplement its member countries' official reserves.