Indian Foreign Exchange Reserves Reach Record High Amid Global Trade Turmoil

The past few months have seen global trade turmoil. The geopolitics of many countries have severely affected supply chains, as well as inflation, which has increased pressure on foreign exchange reserves. However, according to data released on Friday, India's foreign exchange reserves increased to 716.9 billion during the week ended August 14, the highest level in nearly six months. The week-on-week increase in reserves was led by an increase in the central bank's foreign currency assets by $7.2 billion, while the value of gold reserves increased by $2.7 billion. The increase in foreign exchange reserves is due to the inflow of funds received under policy measures adopted by the central bank to strengthen India's balance of payments. According to news agency Reuters, the central bank's foreign exchange reserves have increased by about $50 billion in the last seven weeks. The reserves have now reached a record high of nearly $57 billion as of RBI's measures announced on Friday.