Mumbai, Sep 19: India’s foreign exchange reserves remained at a robust level of $780.78 billion as of September 11, even as the country saw a weekly decline amid movements in global financial markets.
According to the latest data released by the Reserve Bank of India (RBI), the reserves fell by around $4.9 billion during the week. Despite the decline, the overall reserve position continues to provide an important buffer for the Indian economy against external financial pressures.
Foreign currency assets, which form the largest part of India’s reserves, declined by about $2.3 billion to $645.7 billion during the week.
Gold reserves also witnessed a decline of around $2.5 billion, taking their value to $111.2 billion. The movement reflected changes in the value of the reserve components during the reporting period.
Meanwhile, India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $39 million to $18.8 billion.
The country’s reserve position with the IMF remained unchanged at $4.9 billion.
India’s sizeable foreign exchange reserves provide the country with greater financial flexibility in managing external shocks, supporting international payments and maintaining confidence in the domestic financial system.
The reserve position also remains significant at a time when global markets continue to respond to changing interest-rate expectations, currency movements, geopolitical developments and fluctuations in commodity prices.
While weekly movements in reserves are influenced by valuation changes and shifts in individual components, the overall level of reserves remains an important indicator of India’s external-sector strength and its ability to manage global financial volatility.