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India Forex Reserve: About a week ago, Prime Minister Narendra Modi had not only asked the public to reduce the use of petrol and diesel, reduce the use of cooking oil, avoid buying gold and silver and avoid traveling abroad. Their real objective was to save the country’s treasury, which is in the form of dollars and gold, from becoming empty. The special thing is that the government had already started filling the country’s treasury, which is clearly visible in the data. According to the data released by RBI, the country’s forex reserves have increased by more than $6 billion i.e. ₹60,000 crore. The special thing is that this increase has happened after two consecutive weeks of decline. Let us also explain the data released by RBI.

Significant increase in foreign exchange reserves

The Reserve Bank of India said that in the week ending May 8, India’s foreign exchange reserves increased by more than $6.295 billion or ₹60,000 crore to $696.988 billion. Last week, total reserves had declined by $7.794 billion to $690.693 billion. In the week ending February 27 this year, before the West Asian crisis began, foreign exchange reserves reached an all-time high of $728.494 billion. Subsequently, pressure on the rupee increased and it fell for several weeks, forcing the Reserve Bank of India (RBI) to intervene in the foreign exchange market by selling dollars.

Assets and gold reserves also increased

According to Central Bank data, foreign currency assets form a major part of the reserves. In the week ending May 8, it increased by $562 million to $552.387 billion. These dollar-denominated foreign currency assets also include the impact of any appreciation or decline in the value of non-US currencies held in foreign exchange reserves, such as the euro, pound and yen. RBI said that during the week, the value of gold reserves increased by $5.637 billion to $120.853 billion. Special drawing rights (SDRs) also rose by $84 million to $18.873 billion, the central bank said. According to Central Bank data, India’s reserve position in the IMF also increased by $12 million to $4.875 billion at the end of this week.

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