India's forex reserves surge by $7B to nearly $693B
What's the story
India's foreign exchange (forex) reserves have seen a significant increase of $6.9 billion, bringing the total to $692.72 billion for the week ending May 23, as per data released by the Reserve Bank of India (RBI).
This comes after a decline of $4.8 billion in the previous week, which had brought the reserves down to $685.729 billion for the week ending May 16.
Historical high
Forex reserves peak in September 2024
The highest level of India's forex reserves was recorded in September 2024, when it hit a whopping $704.8 billion.
This new data suggests changes in the country's financial situation since then.
The latest increase may also reflect the RBI's efforts to keep India's economy stable and strong amid global challenges like trade tensions and currency fluctuations.
Reserve components
Breakdown of forex reserves composition
The latest data from RBI also gives a detailed look at what makes up India's forex reserves.
Foreign currency assets, which make up a big part of these reserves, went up by $4.5 million to $586.16 billion in the week ending May 23.
These assets are affected by how currencies like euro, pound and yen perform against the US dollar.
Reserve growth
Gold reserves and SDRs see significant increases
Along with foreign currency assets, India's gold reserves also saw a jump during this period. They went up by $2.366 billion to $83.58 billion for the week ending May 23.
The Special Drawing Rights (SDRs) also rose by $81 million to $18.57 billion during this time.