New Delhi, Feb 20 (.) India’s foreign exchange reserves climbed to a historic high of USD 725.73 billion for the week ended February 13, registering a sharp weekly increase of USD 8.66 billion, according to the latest data released by the Reserve Bank of India (RBI) on Friday.
The surge in reserves reflects sustained capital inflows, improved external sector stability, and valuation gains in reserve components, particularly gold and foreign currency assets.
The largest component of the reserves, Foreign Currency Assets (FCAs), stood at USD 573.60 billion, marking an increase of USD 3.55 billion during the week.
FCAs are expressed in US dollar terms and include the effect of appreciation or depreciation of non-US currencies such as the euro, pound sterling, and Japanese yen held in reserves.
The rise in FCAs indicates both inflows into the economy and favourable currency valuation movements, strengthening the country’s overall reserve position.
India’s gold reserves recorded a substantial increase of USD 4.99 billion, taking the total gold holdings to USD 128.47 billion. The sharp rise in gold value is largely attributed to gains in international gold prices during the reporting week.
On a year-on-year basis, gold reserves have witnessed a remarkable expansion of over USD 54 billion, reflecting both accumulation and valuation gains.
The higher share of gold in the reserve basket signals a continued effort to diversify reserve assets amid global economic uncertainties.
The country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by USD 103 million to USD 18.92 billion.
In addition, India’s Reserve Position in the IMF rose by USD 19 million, reaching USD 4.73 billion for the week under review.
. SAS PRS