India's foreign exchange reserves up almost $50 billion since July
India's foreign exchange reserves rose over $9 billion in the week ending August 14. Foreign currency assets and gold reserves significantly contributed to this overall increase. Banks received substantial funds through special deposit schemes and borrowing measures.
India's foreign exchange reserves surged by nearly $50 billion since July, driven by increased inflows into the country's banks. The Reserve Bank of India (RBI) announced a $9.905 billion increase in the week ending August 14, bringing the total reserves to $716.90 billion. This marked the seventh consecutive weekly rise in the forex stockpile.
Foreign currency non-resident (FCNR-B) deposits, the largest contributor, rose $7.2 billion to $581.85 billion, with gold reserves adding another $2.67 billion to $111.41 billion. Indian banks received around $53 billion via the FCNR-B deposit mobilization scheme, while additional $4.5 billion came through external commercial borrowings (ECB) and overseas foreign currency borrowings (OFCB).
The RBI anticipates around $80 billion inflows, and extended the FCNR-B scheme deadline to August 31 and ECB/OFCB windows until December 31, 2026.
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