India’s foreign exchange reserves witnessed a significant increase of $2.561 billion to reach $644.151 billion for the week ended May 10, according to data released by the Reserve Bank of India (RBI) on Friday.
This surge in reserves follows an increase of $3.668 billion in the previous reporting week, bringing the total reserves to $641.59 billion after three consecutive weeks of decline.
The foreign currency assets, a major component of the reserves, rose by $1.488 billion to $565.648 billion during the week. Foreign currency assets include the effect of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves.
The RBI data also revealed that gold reserves increased by $1.072 billion to reach $55.952 billion for the week ended May 10.
Additionally, the Special Drawing Rights (SDRs) saw an upswing of $5 million, rising to $18.056 billion. However, India’s reserve position with the International Monetary Fund (IMF) witnessed a slight decline of $4 million, settling at $4.495 billion in the reporting week.
The continuous growth in India’s foreign exchange reserves is seen as a positive indicator of the country’s economic strength and ability to manage external shocks.
