RBI push: Forex reserves at all-time high of $729.3bn

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MUMBAI: The country’s foreign exchange reserves rose by $12.4 billion in the week ended Aug 21, to an all-time high of $729.3 billion, driven largely by non-resident deposits drawn through a special scheme under which RBI took over the foreign currency risks from banks. Foreign currency assets, the largest component, rose $9.5 billion to $591.3 billion, while gold reserves increased $2.8 billion to $114.2 billion.

The largest weekly increase in total reserves was recorded in the week ended Aug 27, 2021, when reserves rose sharply following a major allocation of special drawing rights by the IMF.For the financial year so far, total reserves have increased by $38.2 billion from end-March 2026. FCA have risen $39.1 billion, more than the overall increase, while gold reserves have declined $1.2 billion.The recent rise in reserves, particularly FCA, has been supported by RBI measures to attract dollar inflows and manage rupee volatility. In June, RBI and govt launched a concessional USD-INR forex swap facility for FCNR(B) deposits, overseas foreign currency borrowings and ECBs.The facility has mobilised an estimated $65 billion to $73 billion ahead of its Aug 31 closure.

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