India 's foreign exchange reserves have reached a new all-time high. According to a press release issued by the Reserve Bank of India (RBI), India's foreign exchange reserves increased by $2.838 billion in the week ended September 20. This has increased it to $692.3 billion from $689.4 billion on September 13. Data from the central bank showed that foreign currency assets, which hold a large share in the foreign exchange reserves, increased by $2.057 billion to $605.686 billion as of September 20. It was $603.629 billion in the week ended September 13. India's foreign exchange reserves have also been supported by the recent big cut in interest rates by the US central bank Federal Reserve.

Increase in gold reserve

RBI data also showed that the country's gold reserves increased by $726 million to $63.613 billion from $62.887 billion on September 13. Gold is the second-largest contributor to India's foreign exchange reserves.

special drawing rights 

Two other elements that contribute to the foreign exchange reserves are: Special Drawing Rights (SDRs) and reserve position with the International Monetary Fund (IMF). According to RBI data, SDRs increased by $121 million as of September 20 to $18.540 billion from the previous level of $18.419 billion on September 13. India's reserve position with the International Monetary Fund (IMF) fell by $65 million to $4.458 billion as per the latest data filing from $4.523 billion in the previous week.

Understand this too

The Reserve Bank of India (RBI) intervenes in the foreign exchange market to control volatility in the Indian currency (Indian Rupee). RBI's intervention leads to changes in foreign currency assets. Also, there is appreciation and depreciation of foreign currencies kept as reserves.