The latest rise follows a $12.422 billion increase in the previous week, when reserves stood at $729.328 billion. This marks the ninth consecutive weekly increase, with the country’s forex reserves gaining nearly $75 billion during this period.

Foreign Currency Assets Lead the Rise

Foreign currency assets (FCAs), the largest component of India’s forex reserves, increased by $9.337 billion to $600.67 billion during the week. Gold reserves also recorded a significant rise of $2.191 billion, reaching $116.409 billion.

Meanwhile, Special Drawing Rights (SDRs) declined by $43 million to $18.81 billion, while India’s reserve position with the International Monetary Fund (IMF) fell by $11 million to $4.914 billion.

RBI Measures Boost Dollar Inflows

The sharp increase in reserves has been supported by the RBI’s special foreign-exchange swap initiatives introduced in June. These measures attracted substantial foreign-currency inflows, particularly through deposits by non-resident Indians (NRIs). More than $136 billion was mobilised through the schemes, including about $127 billion from NRI deposits.

The record forex cushion gives the RBI greater capacity to manage volatility in the foreign-exchange market and support orderly conditions for the rupee. The rupee also strengthened by around 0.3% to ₹95.3775 per US dollar during the week ended August 28.

The record reserves strengthen India’s external financial buffer and provide additional protection against global economic and geopolitical uncertainties.