India’s foreign exchange reserves have soared to a new high for the fifth consecutive week, signaling a steady boost to the country’s economic strength. According to data from the Reserve Bank of India (RBI), during the week ending September 13, 2024, the reserves increased by $223 million, reaching a remarkable $689.45 billion. This follows a significant jump of $5.24 billion in the previous week.
At the same time, neighboring Pakistan also witnessed a rise in its foreign exchange reserves, offering some relief amidst its ongoing economic struggles.
Steady Growth in India’s Foreign Reserves Boosts Economic Confidence
India’s foreign exchange reserves have been on a consistent upward trajectory for the past five weeks. The latest data shows that during the week ending on September 13, 2024, the reserves grew by $223 million. This has pushed India’s total foreign exchange reserves to a record-breaking $689.45 billion. This includes a large increase of $5.24 billion that took place during the previous week ending on September 6, 2024.
However, when measured in terms of Indian Rupees, the reserves showed a slight decline, dropping by ₹776 crore that week. The previous week’s surge, along with earlier increases, has kept the overall trend positive for India’s financial health.
Foreign Currency Assets See Slight Dip, Gold Reserves Climb
Despite the overall growth in reserves, India’s Foreign Currency Assets (FCA) showed a slight decrease during the week. FCAs fell by $223 million, bringing the total to $603.629 billion. Foreign Currency Assets are a key part of the country’s reserves, and this slight dip comes after a significant jump of $5.107 billion the previous week.
On the other hand, India’s gold reserves showed an impressive increase. During the same week, gold reserves jumped by $899 million, reaching a total of $62.887 billion. The rise in gold reserves adds to India’s economic buffer, especially important for stabilizing the currency in global markets.
Decline in SDR and IMF Reserves
India’s Special Drawing Rights (SDR), a reserve currency maintained by the International Monetary Fund (IMF), saw a decrease of $516 million. Now, the SDR stands at $18.419 billion. Additionally, the country’s reserve currency with the IMF dropped by $108 million, settling at $4.523 billion.
Pakistan Sees Marginal Rise in Foreign Exchange Reserves
While India continues to break records, Pakistan has also seen an improvement in its foreign exchange reserves. Though facing a severe shortage of foreign currency, Pakistan’s reserves increased by $30.4 million during the week ending September 13, 2024, reaching $14.826 billion. Earlier, during the week ending September 6, 2024, the reserves grew by $56.2 million. This increase, though small, is a positive sign for the struggling economy.
