Forex reserves at near 7-month high of $577 bn on spike in currency assets

Following a decline of $100 billion in its reserves from February to September of 2022, the RBI has over the last three months been replenishing its holding

The Reserve Bank of India’s foreign exchange reserves rose $3 billion to $576.76 billion in the week ended January 27, latest data released by the central bank showed.

The current level of reserves is the highest since the week ended July 8, 2022.

The rise in the reserves in the previous week was primarily on account of an increase in the RBI’s foreign currency assets which climbed $2.7 billion to $509.02 billion, the data showed.

“The revaluation of dollar assets and expected dollar buying from the central bank pushed the forex kitty to the level last seen in July 2022,”