India's forex reserves climb past $700 billion on robust inflows
MUMBAI: India’s foreign exchange reserves rose to a four-month high of $707 billion as of August 7, bolstered by robust inflows under policy measures to strengthen India’s balance of payments. The reserves jumped $14.1 billion week-on-week, the largest rise since January, the Reserve Bank of India said on Friday. The rise was led by a $9.9 billion weekly gain in the central bank’s foreign…
Mumbai, India witnessed a significant surge in its foreign exchange reserves, reaching a four-month high of $707 billion by August 7. The Reserve Bank of India reported a remarkable $14.1 billion increase week-on-week, the most substantial rise since January. The central bank's foreign currency assets experienced a major $9.9 billion weekly gain, driving this upward trend.
Over the past six weeks, the FX pile has expanded by approximately $40 billion. In June, the Reserve Bank implemented measures to attract dollar inflows, including discounted hedging facilities for overseas borrowing by state-run entities, tax reductions on investments in government bonds, and free hedging services for banks to increase overseas FX deposits.
From June 8 to July 31, the swap facilities attracted over $40 billion in flows, while foreign investors made a net purchase of Indian government bonds worth over $2.5 billion through the fully accessible route.
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