India's Foreign Reserves Jump Almost 4-Month High To $607 Billion: RBI

India's foreign exchange (forex) reserves jumped four-month high, up $2.8 billion to $607 billion in the week ended December 8, showed the data by the Reserve Bank of India (RBI). The total reserves grew on account of an increase in foreign currency assets, which rose by $3 billion in the week. According to the currency market participants, the RBI has been active in the foreign exchange market. The domestic currency Indian rupee has appreciated by 0.5% in December so far. In contrast, gold reserves declined by $199 million in the earlier week. The total reserves stood at $604 billion.

In the prior reporting week, the overall reserves had increased by $6.107 billion to $604.042 billion.

India's forex kitty had reached an all-time high of $645 billion in October 2021. The reserves took a hit after the RBI deployed the kitty to protect the rupee amid pressures caused majorly by global developments since last year. Meanwhile, this decline in forex kitty is also due to a rise in the cost of imported goods in 2022

As per the data, the country's foreign currency assets -- a major component of the reserves -- rose by $3.089 billion to $536.699 billion for the week ended December 8. Expressed in dollar terms, the foreign currency assets include the impact of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves.

The Special Drawing Rights fell $63 million to $18.188 billion. India's reserve position with the International Monetary Fund (IMF) slipped $11 million to $4.842 billion in the reporting week, according to the RBI data.