India’s foreign exchange reserves rose by $4.038 billion to $698.268 billion in the week ended September 5, driven largely by a jump in gold holdings, the Reserve Bank of India (RBI) said on Friday.Gold reserves surged $3.53 billion to $90.299 billion, PTI reported. While foreign currency assets, the largest component of the reserves, increased by $540 million to $584.477 billion. These assets reflect the valuation impact of non-US currencies such as the euro, pound, and yen.Special Drawing Rights (SDRs) dipped by $34 million to $18.742 billion, and India’s reserve position with the International Monetary Fund rose marginally by $2 million to $4.751 billion. In the previous week, total reserves had climbed by $3.51 billion to $694.23 billion.Forex reserves are a key buffer against external shocks such as rising oil prices, currency fluctuations, and global financial volatility. They also indicate the country’s capacity to meet import obligations and intervene in the currency market when required. The Reserve Bank of India actively manages these reserves to maintain financial stability and bolster confidence in the external sector. RBI’s weekly forex data, published every Friday through its statistical supplement, provides a snapshot of India’s external strength and import cover.
