Gold reserves rise by $2.2 billion; India's forex reserves stand at $700.23 billion

New Delhi, Oct 3 (IANS) India’s gold reserves jumped by $2.238 billion to $95.017 billion during the week ended September 26, according to the latest data released by the Reserve Bank of India (RBI) on Friday.

The overall foreign exchange reserves stood at $700.236 billion in the reporting week. In the previous week, the reserves had been placed at $702.57 billion.

Foreign currency assets, which form the largest share of the reserves, were valued at $581.757 billion.

These assets fell during the week, and their dollar value also reflects changes in the valuation of major global currencies such as the euro, pound and yen.

The Special Drawing Rights (SDRs) were pegged at $18.789 billion, while India’s reserve position with the International Monetary Fund (IMF) stood at $4.673 billion in the reporting week, the data showed.

India’s forex reserves remain close to their record highs, providing a strong buffer against external shocks and giving confidence to global investors.

Analysts point out that the comfortable reserve position helps the RBI manage currency market volatility and supports the rupee during global uncertainties.

Meanwhile, in the previous week, the gold reserves rose by $360 million to $92.78 billion.

Foreign currency assets, the largest component of the reserves, were valued at $586.15 billion during the previous week.

The reserves also include special drawing rights (SDRs) and India’s reserve position with the International Monetary Fund (IMF), which stood at $18.88 billion and $4.76 billion, respectively.

SDRs increased by $105 million, while the IMF reserve position rose by $2 million during the week ended September 19.

The RBI periodically intervenes in the foreign exchange market through liquidity operations, including the sale of dollars, to manage volatility in the rupee.

According to officials, such interventions are aimed at ensuring orderly market conditions rather than targeting a specific exchange rate.

--IANS

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