Record $44.9 bn surge in a week makes India 4th-largest Fx holder
Gold reserves, by contrast, declined by $2.59 billion to $113.81 billion during the week as gold prices fell 0.56 per cent to $4,429 an ounce
India's foreign exchange reserves soared to a record $785.7 billion in the week ending September 4, according to central bank data released on Friday. The surge of nearly $45 billion week-on-week was fueled by robust capital flows bolstered by policy measures aimed at strengthening the nation's balance of payments. Over the past ten weeks, India's FX reserves have consistently increased, marking a staggering $120 billion jump during this period.
In June, the country introduced a series of incentives to attract dollar inflows, including discounted hedging facilities for overseas borrowings by state-run entities and banks, as well as a complimentary hedging service for banks to acquire overseas FX deposits. The Reserve Bank of India collected $136.3 billion under these initiatives between June 5 and August 31, with the majority of the funds originating from non-resident Indian deposits.
Consequently, the central bank decided to compress the window for its deposit hedging facility for overseas deposits by a month, extending it to August-end.
Written by urgent.news from Business Recorder's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
