India's forex reserves surge record $44.9 billion to all-time high of $785.7 billion
India's foreign exchange reserves reached a record high of $785.7 billion following a $44.9 billion surge in early September. This growth was driven by successful central bank measures to boost inflows and the closure of special foreign-currency deposit windows.
Why it matters
A record-high forex reserve strengthens the rupee and provides the Reserve Bank of India with greater capacity to manage economic volatility and external shocks.
India's foreign exchange reserves surged by a record $44.903 billion in the week ended September 4, taking the country's forex kitty to a fresh lifetime high of $785.706 billion, according to data released by the Reserve Bank of India on Friday.The latest increase follows a $11.475-billion rise in the previous reporting week, when reserves had reached $740.803 billion. The latest weekly gain is the biggest on record and takes the reserves more than USD 44 billion above the previous week's level.The reserves had been under pressure earlier this year as the rupee weakened amid the conflict in West Asia, prompting the RBI to intervene in the foreign exchange market through dollar sales.The trend reversed after the central bank introduced concessional forex swap measures in June to boost foreign-currency inflows and strengthen liquidity in the forex market.
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