India’s Forex Reserves Rise by $1.727 bn to $573.727 bn

India’s forex reserves increased by $1.73 billion to $573.7 billion in the week ended Jan. 20, the Reserve Bank of India said. This is the second consecutive week of a rise in the kitty after the $10.4 billion jump to $572 billion during the preceding week. In October 2021, the country’s forex kitty had reached an all-time high of $645 billion. The reserves have been declining as the central bank deploys the kitty to defend the rupee amid pressures caused majorly by global developments. In October 2022, the reserves had swelled by $14.7 billion during a week.

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During the reporting week, the foreign currency assets, a major component of the reserves, increased by $839 million to $506.4 billion, according to the Weekly Statistical Supplement released by the RBI.

About Forex Reserves:

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-U.S. units like the euro, pound and yen held in the foreign exchange reserves. The gold reserves continued to rise, jumping by $821 million to $43.7 billion, the RBI said. The Special Drawing Rights were up by $68 million to $18.4 billion, the apex bank said. The country’s reserve position with the IMF was down by $1 million to $5.23 billion in the reporting week, the apex bank data showed.