India's Forex Reserves Near Record High Amid Strategic Gains

India's foreign exchange reserves have surged, showing a notable increase of USD 2.294 billion, bringing the total to USD 698.950 billion as of the week ending June 13, according to official figures from the Reserve Bank of India.

During the recent monetary policy meeting, RBI Governor Sanjay Malhotra assured that this significant forex reserve is sufficient to cover 11 months of imports and approximately 96% of India's external debt. The reserves are approaching the all-time high mark of USD 704.89 billion recorded in September 2024.

RBI data highlights that the foreign currency assets (FCA), a critical component of the reserves, amount to USD 589.426 billion, while gold reserves stand at USD 86.316 billion. India, aligning with a global trend among central banks, has substantially increased its gold reserves since 2021, contributing to the robust growth in overall forex reserves. The RBI strategically manages the reserves to stabilize the Rupee by buying dollars when strong and selling when it weakens, enhancing its pivotal role in India's economic stability.

(With inputs from agencies.)