Key Highlights

• India’s forex reserves rose by $2.29 billion to $698.95 billion for the week ending June 13.
• Foreign currency assets gained $1.73 billion and gold reserves increased by $0.43 billion during the week.

India's foreign exchange reserves increased by $2.29 billion to $698.95 billion in the week ended June 13, according to data released by the RBI. The country's forex reserves stood at $696.66 billion in the week ended June 6, up $5.17 billion.

India's foreign exchange reserves have risen by nearly $7.5 billion in the last two weeks, bringing them close to the all-time high of $704.885 billion set at the end of September last year. Foreign currency assets, a key component of reserves, increased by $1.73 billion to $589.42 billion in the week ending June 13.

According to RBI data, the gold component of the country's forex reserves increased by $428 million this week to $86.32 billion. 

Also Read: Forex Reserves Decline by $2.06 Billion After Eight Weeks of Gains

As geopolitical tensions create uncertainty, central banks around the world are increasingly accumulating gold as a safe-haven asset in their foreign exchange reserves. The Reserve Bank's gold holdings in its foreign exchange reserves have nearly doubled since 2021.

The special drawing rights increased by $85 million during the week to 18.76 billion. India's reserve position with the IMF increased by $43 million to $4.45 billion in the reporting week, according to RBI data.

India's foreign exchange reserves are sufficient to cover more than 11 months of goods imports and approximately 96% of outstanding external debt, RBI Governor Sanjay Malhotra stated earlier this month following the monetary policy review.

The RBI Governor stated, "Overall, India's external sector remains resilient, with key external sector vulnerability indicators improving. We remain confident in meeting our external financing needs."