India’s foreign exchange reserves have soared to a record high of USD 648.562 billion, marking the seventh consecutive weekly increase, according to the latest data from the Reserve Bank of India (RBI).

The surge was propelled by a USD 549 million rise in foreign currency assets (FCA), reaching USD 571.166 billion, as indicated in the central bank’s weekly statistical report. Additionally, gold reserves climbed by USD 2.398 billion to USD 54.558 billion.

In 2023 alone, the RBI bolstered the forex reserves by approximately USD 58 billion, rebounding from a cumulative decline of USD 71 billion in 2022.

So far in 2024, the reserves have grown by about USD 28 billion, reinforcing the nation’s economic resilience.

Foreign exchange reserves serve as a crucial buffer for economic stability, predominantly held in reserve currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling.

While the reserves touched a previous peak in October 2021, fluctuations since then have been influenced by various factors, including the fluctuating costs of imported goods in 2022 and RBI interventions to manage exchange rate volatility.

The RBI’s strategic interventions in the forex market aim to maintain market stability and curb excessive volatility in the exchange rate, without adhering to specific target levels, thereby ensuring orderly market conditions.

(With ANI inputs)