According to the Reserve Bank of India's (RBI) weekly statistical supplement, India’s Forex (foreign exchange) reserves jumped by over $2.5 billion to reach a record high at $355.9 billion during the week ended March 18.
The previous high stood at $355.4 billion reported on June 27, 2015.
The foreign currency assets (FCA) that is the largest component of the Forex reserves increased by $2.50 billion to $332.50 billion during the week under review
Apart from the US dollar the FCA consists of nearly 30 percent of other non-US dollar major global currencies, securities, and bonds. The country’s gold reserves remained stagnant at $19.32 billion.
The individual movements of these currencies against the US dollar impact the overall foreign reserves value.
Similarly, India’s reserve position with the IMF (International Monetary Fund) also edged higher by $21.1 million to $2.61 billion.
This is a particular good sign for the Indian economy, especially after several weeks of uneven market conditions, and with sentiments in the stock markets improving, the jump in Forex reserves reveal that foreign investors have initiated investing back into the Indian markets.