Mumbai, Aug 21: India’s foreign exchange reserves increased by nearly $9.9 billion to $716.9 billion in the week ended August 14, according to data released by the Reserve Bank of India (RBI) on Friday.
The latest rise follows a sharp increase in the previous week, when reserves crossed the $700-billion mark. The continued improvement provides India with a stronger cushion against external financial pressures and global market volatility.
The increase comes amid substantial foreign-currency inflows and recent measures aimed at strengthening the country’s external position. The RBI had earlier reported strong inflows through its foreign-currency deposit and swap measures.
A healthy reserve position can support confidence in India’s external finances, help manage periods of currency-market volatility and provide greater flexibility in responding to global economic uncertainties.
The sustained growth in reserves also comes at a time when international markets remain sensitive to movements in crude oil prices, interest rates and geopolitical developments.
India’s forex reserves reaching $716.9 billion marks a positive development for the country’s financial resilience and provides an important external buffer as the economy continues to navigate global uncertainties.
