India's Forex Reserves Reach $595.1 Billion, Marking A Notable Increase Of $1.9 Billion

India's foreign exchange reserves have witnessed a significant increase of $1.9 billion, reaching a staggering $595.1 billion as on June 30.

The Weekly Statistical Supplement published by the RBI shows that foreign currency assets (FCAs) increased by $2.5 billion to $528 billion. The FCAs, which are expressed in dollar terms, take into account the impact of rising or falling non-US currencies like the euro, pound, and yen held in foreign exchange reserves.

The RBI said that gold reserves fell by $472 million to $43.8 billion.

In the reporting week, the nation's reserve position with the IMF decreased by $118 million to $5 billion, according to data from the apex bank.

The nation's foreign exchange reserves peaked in October 2021 at USD 645 billion. As the central bank uses its funds to defend the rupee against pressures mostly brought on by global events, reserves have been decreasing.

In order to stop the rupee from falling sharply in value, the RBI frequently intervenes in the market through liquidity management, including by selling dollars.