India's Forex Reserves Rise to $696.988 Billion Following $6.295 Billion Increase

India's Forex Reserves Surge to $696.988 Billion

India's foreign exchange reserves rose significantly by $6.295 billion to $696.988 billion during the week ended May 8, as per the Reserve Bank's latest data release on Friday. This marks a notable recovery from the previous week's decline of $7.794 billion, which brought the overall reserves down to $690.693 billion.

The country's forex kitty had previously reached an all-time high of $728.494 billion during the week ended February 27 this year, before the onset of the West Asia crisis. The crisis led to several weeks of decline, as the rupee came under pressure and the Reserve Bank of India (RBI) was forced to intervene in the forex market through dollar sales.

Key Components of India's Forex Reserves

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During the week ended May 8, foreign currency assets, a major component of the reserves, increased by $562 million to $552.387 billion. The value of gold reserves also jumped by $5.637 billion to $120.853 billion, while the Special Drawing Rights (SDRs) were up by $84 million to $18.873 billion. Furthermore, India's reserve position with the IMF was also up by $12 million to $4.875 billion at the end of the reporting week.