Dollar deposits push India's forex reserves to fresh record for week ended August 28

Kitco Media
By Reuters
Published:
Updated:
Reuters
Dollar deposits push India's forex reserves to fresh record for week ended August 28 teaser image

MUMBAI, Sept 4 (Reuters) - India's foreign exchange reserves (INFXR=ECI), climbed to another record high of $740.80 billion ​in the week to August 28, central bank ‌data showed on Friday, boosted by heavy inflows from special schemes to attract dollar inflows into the country.

India's FX pile has ​risen for nine straight weeks, jumping by almost $75 ​billion during this period, with the latest figure ⁠comfortably surpassing $729.33 for week ended August 21.

In June, ​India unveiled discounted hedging facilities for overseas borrowings by state-run ​firms and banks, and a free-of-cost hedging facility for banks to raise overseas FX deposits.

The Reserve Bank of India received over $136 billion ​under these schemes between June 5 and August ​31, including about $127 billion from non-resident Indian deposits.

For the week, the rupee ‌rose ⁠0.3% against the dollar to 95.3775.

The inflow will give the RBI strong spot FX reserves which can be used to stabilise or strengthen the rupee, HSBC said ​in a note.

Changes ​in foreign ⁠currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of ​other currencies held in its reserves.

Foreign exchange ​reserves ⁠include India's Reserve Tranche position in the International Monetary Fund.

FOREIGN EXCHANGE RESERVES (in million U.S. dollars)
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Aug 28 Aug 21
2026 2026
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Foreign ⁠currency assets ​600,670 591,333
Gold 116,409 114,218
SDRs 18,810 ​18,852
Reserve Tranche Position 4,914 4,925
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Total 740,803 729,328
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Source text: (https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx, opens new tab)

((India Headline News Team; +91 80 ​6749 1310))

Reporting by Dharamraj Lalit Dhutia; Editing by Nivedita Bhattacharjee

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