India's forex reserves soar by $3.51 billion: Find out how
India's foreign exchange reserves jumped by $3.51 billion to reach $694.23 billion for the week ending August 29, 2024, bouncing back after a dip the previous week.
The increase was driven by gains in foreign currency assets, gold, Special Drawing Rights (SDRs), and India's position with the IMF, according to RBI data.
Breakdown of the reserves
Most of the boost came from foreign currency assets—which include dollars, euros, pounds, and yen—up by $1.68 billion.
Gold reserves also climbed by $1.76 billion, now totaling $86.76 billion.
SDRs nudged up by $40 million and India's IMF reserve position rose by $18 million.
Why do forex reserves matter?
Big forex reserves give India more financial stability and help keep the rupee steady when global markets get shaky.
The RBI steps in to manage things behind the scenes—like selling dollars—to make sure sudden swings don't throw off everyday life or business in India.