India's Forex Reserves Reach Record $729.33 Billion
· Business · Times of India, Moneycontrol
India's foreign exchange reserves surged by $12.42 billion to an all-time high of $729.33 billion for the week ending August 21. This marks the eighth consecutive week of growth, driven primarily by a $9.48 billion rise in foreign currency assets and a $2.8 billion increase in gold holdings. The Reserve Bank of India implemented measures in June to attract dollar inflows, including discounted hedging facilities for state-run firms and banks. The central bank has also intervened in the foreign exchange market to support the rupee, which has partially offset the impact of these massive inflows.
Why it matters
The record-high reserves provide the Reserve Bank of India with a stronger buffer to manage currency volatility and maintain stability in the balance of payments.
Read the original report — Times of India
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