Forex reserves rise by USD 5.54 billion to USD 692.57 billion

India’s foreign exchange reserves recorded a strong rise for the week ended 14 November, increasing by USD 5.543 billion to reach USD 692.576 billion, the Reserve Bank of India (RBI) said on Friday. The sharp recovery comes after a decline of USD 2.699 billion in the previous reporting week, when reserves had slipped to USD 687.034 billion.

The surge in the country’s reserves this week was driven largely by a steep jump in the value of gold holdings.

Gold reserves rose by USD 5.327 billion, taking the total to USD 106.857 billion.

This increase mainly reflects a rise in global gold prices, as the RBI’s gold is valued according to international market movements.

Foreign Currency Assets Record a Mild Increase

Foreign currency assets (FCAs), the largest component of India’s reserves, saw a modest rise of USD 152 million, bringing the total to USD 562.29 billion.

The RBI noted that FCA figures also capture the impact of movements in major international currencies such as the euro, pound, and yen, held as part of India’s reserves. Appreciation or depreciation in these currencies against the US dollar can influence the reported value.

SDRs and IMF Position Also Improve

Two smaller components of the reserves also saw slight gains:

• Special Drawing Rights (SDRs): Up by USD 56 million to USD 18.65 billion.
• Reserve position in the IMF: Higher by USD 8 million, reaching USD 4.779 billion.