India's forex reserves have jumped $2.7B to $698B: RBI
What's the story
India's foreign exchange reserves have witnessed a significant increase of $2.7 billion, bringing the total to an impressive $698.19 billion for the week ending July 25. The data was released by the Reserve Bank of India (RBI), showing a recovery from a previous dip in reserves. The rise highlights RBI's active role in managing forex markets and maintaining currency stability in India.
Market management
RBI's role in maintaining currency stability
The RBI often intervenes in the market through liquidity management, including dollar sales, to prevent a sharp depreciation of the rupee. The central bank closely monitors forex markets and intervenes only when necessary to maintain orderly conditions by preventing excessive volatility in exchange rates. This is done without any pre-determined target level or band for intervention.
Figures
A look at the reserves
RBI said India's gold reserves jumped by $1.2 billion to $85.7 billion during the week. The Special Drawing Rights (SDRs) surged by $126 million to hit $18.8 billion. Finally, the country's reserve position with the IMF rose by $55 million to touch $4.75 billion in the reporting week, data from the apex bank showed.