The Reserve Bank of India (RBI) said on Friday, May 12 that India's foreign currency reserves (FOREX) increased by USD 7.196 billion to USD 595.976 billion in the week that ended on May 5.
In the previous reporting week, the total reserves had decreased by USD 4.532 billion to USD 588.78 billion. The nation's foreign exchange reserves peaked at USD 645 billion in October 2021.
The Reserve Bank of India has been using its fund to protect the rupee against pressures mostly brought on by global events, which has resulted in a decline in foreign exchange reserves. According to the most recent Weekly Statistical Supplement issued by the Reserve Bank of India, the foreign currency assets, a significant component of the reserves, climbed by about USD 6.536 billion to USD 526.021 billion during the week that concluded on May 5.
The value of the gain or depreciation of non-US currencies like the euro, pound, and yen held in foreign exchange reserves is included in the foreign currency assets, expressed in dollar terms. According to the RBI, gold reserves climbed by USD 659 million to USD 46.315 billion.
India The Reserve Bank of India (RBI), which is India's central bank, has assets denominated in foreign currencies, which are referred to as forex reserves. Foreign currency, gold, Special Drawing Rights (SDRs) distributed by the International Monetary Fund (IMF), and other reserve assets are included in these reserves.
Maintaining foreign exchange reserves is intended to protect a nation's financial system against external and internal threats, especially during periods of economic unrest. The country's foreign exchange reserves may be used to control currency fluctuations, fund imports, and assist the repayment of its external debt. Various variables, including increasing foreign investment inflows, a surplus in the current account balance, and an increase in remittances from Indians residing abroad, are blamed for the growth in foreign exchange reserves.