India's foreign exchange reserves climbed by $14.136 billion to $707.002 billion in the week ended August 7, according to data released by the Reserve Bank of India (RBI) on Friday and reported by Business Today.
Reserves recover after record high
The latest weekly gain extends a run of accretion. According to Business Today, the reserves had increased by $10.512 billion to $692.866 billion in the previous week ended July 31, as per data cited by PTI. India's forex reserves had touched a record $728.494 billion in the week ended February 27 before the onset of the Middle East conflict triggered several weeks of declines. During that period, the rupee came under pressure, prompting the RBI to intervene in the foreign exchange market through dollar sales.
Component-wise breakdown
Foreign currency assets (FCAs), the largest component of India's reserves, rose by $9.946 billion to $574.625 billion for the week ended August 7, RBI data showed. FCAs, when expressed in dollar terms, also reflect the impact of appreciation or depreciation of non-US currencies such as the euro, pound and yen held in the reserves. Special drawing rights (SDRs) rose by $79 million to $18.745 billion, while India's reserve position with the IMF increased by $116 million to $4.894 billion.
| Component | Weekly change | Level |
|---|---|---|
| Foreign currency assets | +$9.946 billion | $574.625 billion |
| Gold reserves | +$3.995 billion | $108.738 billion |
| Special drawing rights (SDRs) | +$79 million | $18.745 billion |
| Reserve position with IMF | +$116 million | $4.894 billion |
Policy measures and inflows
The rise in reserves comes after the RBI and the government launched measures in July, including the FCNR(B) deposit scheme, to attract foreign exchange inflows. India has so far received about $40 billion under these measures, according to reports. The previous week's $10.512 billion gain, cited by PTI, indicated that the accumulation was under way even before the latest release.
What the data shows for corporate treasuries
For CFOs and treasury directors monitoring India's external position, the weekly reserve figures offer a more granular view of the central bank's FX operations. The RBI intervened through dollar sales when the rupee came under pressure after the February record high, according to Business Today. The subsequent $14.1 billion accumulation in the week ended August 7, which included a $9.946 billion rise in FCAs and a $3.995 billion gain in gold, signals a renewed build-up of the buffer. The composition of the reserves — with euro, pound and yen components embedded in the FCA line — also means currency valuation swings in those markets will directly affect India's reported reserve levels in the coming weeks, a factor worth monitoring when comparing dollar-based balance sheet exposures against reserve headlines.
Gold reserves increased by $3.995 billion to $108.738 billion during the week, according to RBI data, while SDRs and the IMF position also advanced. The RBI's weekly disclosure, released on Friday, covers each component separately, giving market participants a detailed read on the composition of India's external buffer.
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