India’s forex reserves hit record $728.5 bn on gold, currency gains

India’s foreign exchange reserves rose to a record high of $728.49 billion in the week ended February 27, latest data from the Reserve Bank of India (RBI) showed. The total reserves increased by $4.88 billion during the week on the back of a rise in gold reserves and foreign currency assets.

The previous record high of $726 billion was hit in the week ended February 13. 

Experts said that reserves rose on the back of a revaluation gain due to the rise in gold prices.

Foreign currency assets increased by $561 million during the week. Expressed in dollar terms, foreign currency assets reflect the impact of appreciation or depreciation in non-US currencies, such as the euro, pound sterling and yen, held as part of the foreign exchange reserves.

During the reported week, the Special Drawing Rights (SDRs) were up by $26 million to $18.86 billion. India’s reserve position with the IMF was also up by $158 million to $4.87 billion during the same period.

In the current financial year so far, India’s foreign exchange reserves have increased by $63 billion.