Forex kitty expands to $702.9 bn, $4.7 bn added in a week; gold reserves rise $2.1 bn

India’s foreign exchange reserves rose by $4.698 billion to $702.966 billion for the week ended September 12, according to data released by the Reserve Bank of India on Friday.

This marks the second consecutive week of robust accretion, after reserves had climbed $4.038 billion to $698.268 billion in the previous reporting week, PTI reported.

Foreign currency assets, the largest component of the reserves, rose by $2.537 billion to $587.014 billion. These assets, expressed in dollar terms, reflect changes in the value of non-US currencies like the euro, pound and yen.

Gold reserves posted a significant jump of $2.12 billion, taking the total to $92.419 billion. Special Drawing Rights (SDRs) rose by $32 million to $18.773 billion, while India’s reserve position with the International Monetary Fund inched up by $9 million to $4.76 billion.

Foreign exchange reserves serve as a vital cushion against external shocks such as rising crude prices, volatile currencies and global financial turbulence. They reflect the country’s ability to meet import obligations and intervene in the currency market when necessary.

The Reserve Bank of India manages these reserves to safeguard financial stability and build confidence in the external sector. Its weekly forex data, released every Friday through the statistical supplement, provides a clear picture of India’s external strength and import cover.