India Becomes 4th Largest Forex Holder As Reserves Rise To $785.7 Billion

India's foreign exchange reserves have reached a record $785.7 billion, helping the country climb to the fourth spot among the world's largest reserve holders. The latest Reserve Bank of India (RBI) data show reserves rose by $44.9 billion in the week ended September 4, the biggest weekly increase in the series and enough to push the country's reserve stockpile to an all-time high.The latest surge caps a two-decade expansion in India's reserve holdings. Weekly RBI data show the country's forex reserves stood at about $141.2 billion in 2005. Since then, reserves have increased more than five-fold, rising steadily through periods of global economic uncertainty, including the 2008 financial crisis, the Covid-19 pandemic and subsequent market volatility.The sharp rise in the latest week was driven primarily by an increase in foreign currency assets, the largest component of reserves.