India’s foreign exchange reserves have once again seen an increase. Foreign exchange reserves increased by $1.85 billion to $595.05 billion for the week ended June 30, 2023 from $593.2 billion in the previous week.
increase in foreign exchange reserves
According to data released by the Reserve Bank of India, foreign exchange stood at $595.05 billion, up from $593.2 billion in the previous week. According to RBI data, foreign currency assets rose by $2.53 billion to $527.79 billion. However, there has been a decline in gold reserves during this period. Gold reserves fell by $472 million to $43.83 billion. According to the RBI, the reserves with the IMF declined by $118 million to $5 billion. The all-time high level of foreign exchange in India was seen in October 2021 when foreign exchange reserves reached $645 billion. But then the RBI had to sell dollars to support the rupee, leading to a decline in foreign exchange reserves.
Increase in foreign exchange reserves due to FII
Last year, foreign exchange reserves fell to $525 billion due to selling by foreign investors following the Russia-Ukraine war. However, foreign exchange reserves have increased due to heavy inflows from foreign investors (FIIs) from lower levels.
