India’s forex reserves continue to rise for three weeks

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MUMBAI: India’s foreign exchange reserves rose by $3.03 billion to $576.761 billion in the week ending on January 27, according to the Reserve Bank of India’s latest data.

The reserves are currently at their multi-month highs with the latest three consecutive weeks’ rise, the RBI’s Weekly Statistical Supplement Bulletin said.

During the week that ended on January 20, the reserves rose by $1.727 billion to $573.727 billion.

According to RBI’s latest data, India’s foreign currency assets, the biggest component of the forex reserves, rose by $2.660 billion to $509.018 billion.

Gold reserves rose by $316 million to $44.027 billion.

At the start of last year — 2022, the overall forex reserves were at about $633 billion.

Much of the decline can be attributed to RBI’s intervention and a rise in the cost of imported goods. In October 2021, the country’s foreign exchange reserves reportedly touched an all-time high of about $645 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

Meanwhile, in the Economic Survey for 2022-23 tabled in the Parliament on January 31, the government said foreign exchange reserves are comfortable and external debt is low. (ANI)

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