Portfolio inflows boost India’s forex reserves by over $8 bn

Healthy portfolio, as well as general FDI capital inflows, further boosted India’s foreign exchange reserves by $8.895 billion during the week ended September 3.

The portfolio equity capital was attracted to India on the prospects of faster economic recovery.

Accordingly, the Reserve Bank of India’s (RBI) forex reserves increased to $642.453 billion from $633.558 billion reported for the week ended August 27.

As per the RBI’s weekly statistical supplement, India’s forex reserves comprise foreign currency assets (FCAs), gold reserves, SDRs, and the country’s reserve position with the IMF.

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $8.213 billion to $579.813 billion.

Similarly, the value of the country’s gold reserves rose by $642 million to $38.083 billion.

The SDR value rose by a whopping $29 million to $19.437 billion.

In addition, the country’s reserve position with the IMF rose by $11 million to $5.121 billion.