Bharat’s foreign exchange reserves have surged to a new record, reaching USD 674.919 billion in the week ending August 2, as reported by the Reserve Bank of India or RBI. This surpasses the previous peak of USD 670.857 billion.
In 2024 alone, Bharat’s forex reserves have increased by approximately USD 45-50 billion. This rise in reserves plays a crucial role in shielding domestic economic activity from global financial fluctuations.
The RBI’s latest data shows that Bharat’s foreign currency assets or FCA, the largest component of the reserves, climbed by USD 5.162 billion to USD 592.039 billion. Additionally, gold reserves grew by USD 2.404 billion to USD 60.099 billion.
With these reserves, Bharat is now well-positioned to cover over 11 months of projected imports. The RBI had added around USD 58 billion to its forex reserves in 2023, following a decline of USD 71 billion in 2022, which was largely due to increased costs of imported goods and RBI interventions to stabilise the rupee against a strengthening US dollar.
Forex reserves are typically held in major currencies like the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI manages these reserves to maintain market stability and mitigate excessive volatility in the exchange rate, without targeting specific levels.
