Forex reserves surge $2.75 bn to $623.2 bn

MUMBAI: India’s forex reserves jumped by $2.759 billion to $623.2 billion in the week ended December 29, the Reserve Bank said on Friday. In the previous reporting week, the overall reserves had increased by $4.471 billion to $620.441 billion. In October 2021, the country’s forex kitty had reached an all-time high of $645 billion.

The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. For the week ended December 29, the foreign currency assets, a major component of the reserves, increased by $1.869 billion to $551.615 billion, as per the data from the Reserve Bank of India (RBI).

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves were up by $853 million to $48.328 billion during the week, the RBI said.