Reserves increased $12.4 billion during the week, with foreign currency assets increasing $9.4 billion to $591 billion, while the value of gold reserves rose by $2.8 billion to $114 billion. Forex reserves last touched a high of $728 billion late February this year. As of August 21, Indian banks have mobilised $65.4 billion in foreign currency non-resident (FCNR-B) deposits under the Reserve Bank of India’s special forex swap facility. Total foreign exchange inflows through this specific window reached $72.85 billion, the RBI said in a statement.
Reserves have increased by $48 billion since the scheme was announced on June 5.
The full $72 billion in gross inflows will not necessarily be reflected one-for-one in India’s foreign exchange reserves. Some of the dollar flows may be used by the central bank to support the rupee through spot market intervention, while a portion may also go toward reducing its outstanding forward liabilities.
The net short forward positions of the RBI stood at $104 billion as of June 30.
