Forex Reserves Rise To $355.947 Billion

Sustained buying by Foreign Portfolio Investors over the last few weeks in the Indian stock markets has pushed the country's foreign exchange reserves to touch an all-time high of $355.947 billion in the week ended March 18.

Data released by the Reserve Bank of India showed that the reserves had touched a high of $355.46 billion in the week ended June 19 last year. This is now slightly higher than the June figure, making it a new record in terms of forex reserves.

In the previous week, the reserves stood at $353.407 billion.

While foreign currency assets rose, gold reserves too were marginally higher by $0.6 million to $19.325 billion in the week.

India's special drawing rights with the International Monetary Fund (IMF) increased by $12.1 million to $1.498 billion, while the country's reserve position with the Fund was up by $21.1 million to $2.618 billion, RBI said.

The country has seen a sustained rise in dollar reserves over the last couple of years, as commodity imports have fallen, due to a crash in commodity prices.

On the other hand sustained inflow of funds from foreign portfolio investors has also helped push reserves higher.

The Reserve Bank of India with its solid forex holdings can now also comfortably intervene in the forex markets, in case the rupee falls.

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