India's forex reserves explained: What they are, who owns them & how RBI uses them
India's foreign exchange reserves have seen significant fluctuations, recently reaching $674.193 billion. The Reserve Bank of India manages these assets to stabilize the rupee and meet international payment obligations.
Why it matters
Understanding forex reserves is essential for grasping how India manages its economic stability and defends its currency against global market volatility.
India's foreign exchange reserves jumped $7.26 billion to $674.193 billion during the week ended July 3, the Reserve Bank of India said on Friday. In the previous reporting week, the forex kitty had dropped by $5.654 billion to $666.933 billion. The kitty had expanded to an all-time high of $728.494 billion during the week ended February 27 this year before the onset of the Middle East conflict, which led to several weeks of a drop as the rupee came under pressure and the RBI had to intervene in the forex market through dollar sales.
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