India's foreign exchange reserves have crossed $680 billion for the first time According to the Reserve Bank of India (RBI), the foreign exchange reserves rose by $7 billion to $681.688 billion in the week ended August 23, 2024. Foreign currency assets increased by $5.983 billion, taking the total amount to $597.552 billion. RBI's gold reserves also saw a good increase, rising $893 million to $61 billion. Also, Special Drawing Rights (SDR) increased by $118 million, now standing at $18.45 billion, and reserves with the International Monetary Fund (IMF) rose by $30 million to $4.68 billion.
The increase in foreign exchange reserves is due to a massive increase in foreign investment in India. This inflow of foreign cash has led to a surge in the Indian stock market, with the Sensex and Nifty hitting all-time highs. The rupee also strengthened slightly against the dollar, closing at 83.86 on August 30, 2024. With all the foreign investment coming in this year, the reserves have increased by $58 billion. It stood at $623 billion on December 29, 2023, and is now over $681 billion. Foreign portfolio investment reached $10.8 billion in June and July 2024.
