Mumbai, July 4 (IANS) India’s foreign exchange reserves once again crossed the $700 billion mark, reaching $702.78 billion for the week ending June 27, according to data released by the Reserve Bank of India (RBI) on Friday.

This marks a significant rise of $4.8 billion from the previous week, when reserves stood at $697.93 billion.

This is the first time in nine months that India’s forex reserves have gone above the $700 billion level. The reserves had last touched an all-time high of $704.88 billion in end-September 2024.

The latest increase was mainly due to a sharp rise in foreign currency assets, which went up by $5.75 billion to reach $594.82 billion.

Foreign currency assets are a major part of the total reserves and include the value of major currencies like the euro, pound, and yen held by the RBI, adjusted for any appreciation or depreciation against the US dollar.

However, gold reserves stood at $84.5 billion during the week. The country’s special drawing rights (SDRs) -- a form of international reserve created by the International Monetary Fund (IMF) -- rose by $158 million to $18.83 billion.

The RBI actively manages the foreign exchange market to maintain stability and prevent extreme movements in the rupee’s value.

While it does not aim for any fixed exchange rate, it intervenes when necessary to curb excessive volatility.

This is typically done through liquidity management, including the selling of US dollars when required.

Meanwhile, the remittances sent back home by Indians working abroad have registered a 14 per cent rise in the financial year 2024-25 to a record $135.46 billion, according to data compiled by the RBI.

The RBI said the inflows, classified under “private transfers,” accounted for more than 10 per cent of India’s gross current account flows of $1 trillion in FY25.

Personal transfer receipts, mainly representing remittances by Indians employed overseas, rose to $33.9 billion in the January-March quarter of 2024-25 from $31.3 billion in the same quarter of the previous year, RBI data shows.

--IANS

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