India's foreign exchange reserves increased by $7.023 billion, reaching a fresh record high of $681.688 billion, during the week that ended on August 23, according to data released by the Reserve Bank of India.
The previous record high was $674.919 billion.
The reserves have been on an upward trend for some time.
In 2024 alone, they have risen by approximately $60 billion cumulatively.
This buffer of foreign exchange reserves helps insulate domestic economic activity from global shocks.
According to the latest data from the RBI, India's foreign currency assets, the largest component of forex reserves, rose by $5.983 billion to $597.552 billion.
Gold reserves during the week increased by $893 million, bringing the total to $60.997 billion.
As per estimates, India's foreign exchange reserves are now sufficient to cover about a year of projected imports.
In the calendar year 2023, India added about $58 billion to its foreign exchange reserves.
In contrast, India's forex reserves saw a cumulative decline of $71 billion in 2022. -- ANI