New Delhi, Jun 8 (KNN) India's foreign exchange reserves soared to a record level of USD 651.5 billion as of May 31, 2024, marking a substantial increase of USD 4.8 billion, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday. This announcement was made in conjunction with key decisions pertaining to the nation's monetary policy.

The central bank had previously reported a dip of USD 2 billion to USD 646.67 billion as of May 24, temporarily retreating from the previous all-time high of USD 648.7 billion.

Addressing the nation's external sector, Das stated, "India's external sector remains resilient, and the key external vulnerability indicators continue to improve."

He expressed confidence in the country's ability to comfortably meet its external financing requirements.

According to the Weekly Statistical Supplement released by the RBI, Foreign Currency Assets (FCAs), which account for the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the foreign exchange reserves, increased by USD 5.065 billion to USD 572.56 billion.

However, gold reserves contracted by USD 212 million to USD 56.50 billion, while Special Drawing Rights (SDRs) declined by USD 17 million to USD 18.11 billion, and reserves in the International Monetary Fund (IMF) dipped by USD 1 million to USD 4.32 billion.

The RBI closely monitors foreign exchange markets and intervenes when necessary to maintain orderly market conditions by containing excessive volatility in the exchange rate, without adhering to any predetermined target level or band.

Interventions typically involve liquidity management measures, including the selling of dollars, to prevent steep depreciation in the Indian rupee.

As India's forex reserves reach unprecedented heights, the nation's economic resilience and ability to navigate global financial landscapes continue to strengthen.

(KNN Bureau)