PM Modi's appeal and a massive jump in forex reserves, India's treasury receives Rs 60,000 crore
According to data released by the RBI, the country's forex reserves have increased by more than $6 billion, or over ₹60,000 crore. Significantly, this increase comes after two consecutive weeks of decline. Let us also explain what kind of data the RBI has released.
About a week ago, Prime Minister Narendra Modi didn't just ask the public to minimize their use of petrol and diesel, reduce their use of cooking oil, refrain from purchasing gold and silver, and postpone foreign travel.
His real goal was to protect the country's treasury, which exists in the form of dollars and gold, from being depleted. Significantly, the government had already begun filling the country's coffers, a task clearly evident in the data.
" "According to data released by the RBI, the country's forex reserves have increased by more than $6 billion, or over ₹60,000 crore. Significantly, this increase comes after two consecutive weeks of decline. Let us also explain what kind of data the RBI has released.
Huge increase in forex reserves
The Reserve Bank of India stated that India's foreign exchange reserves increased by $6.295 billion, or over ₹60,000 crore, to $696.988 billion during the week ended May 8. In the previous week, total reserves had declined by $7.794 billion to $690.693 billion.
Reserves had reached an all-time high of $728.494 billion during the week ended February 27 this year, before the West Asian crisis began.
They then declined for several weeks as pressure on the rupee increased, forcing the Reserve Bank of India (RBI) to intervene in the foreign exchange market by selling dollars.
Assets and gold reserves also increase
According to central bank data, foreign currency assets—a key component of the reserves—increased by $562 million to $552.387 billion in the week ended May 8.
Expressed in dollar terms, these foreign currency assets also include the impact of any appreciation or depreciation of non-US currencies held in the reserves, such as the euro, pound, and yen.
The RBI reported that the value of gold reserves increased by $5.637 billion to $120.853 billion during the week.
The central bank also reported that special drawing rights (SDRs) increased by $84 million to $18.873 billion.
According to central bank data, India's reserve position with the International Monetary Fund (IMF) also increased by $12 million to $4.875 billion at the end of the week.