India's forex reserves rises for 4th straight week

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India's foreign exchange reserves rose for the fourth consecutive week ending on December 2. During the week ending, forex reserves rose by $11.02 billion to $561.16 billion, according to the Weekly Statistical Supplement released by the Reserve Bank of India (RBI).

The forex reserve rose $2.89 billion to $550.14 billion during the week ending November 25.

The uptick in the foreign exchange reserves is a result of the rise in the Foreign Currency Assets (FCA), which is a major component of the overall reserves. The FCA rose $9.69 billion to $496.98 billion for the week ending December 2.

While gold reserves rose $1.09 billion to $41.03 billion.

RBI Governor Shaktikanta Das while addressing the RBI Monetary Policy Committee (MPC) on December 7 said the rupee level is market-determined and should be allowed to find its level and that is what we have been striving to ensure.

The Rupee has appreciated 3.2 percent in real terms between April-October, even as several major currencies have depreciated. The story of the Rupee has been one of resilience and stability, Das said.

Regarding forex reserves, the Governor said that the reserves were ample and had in fact expanded. During the week ended November 25, forex reserves rose $2.89 billion to $550.14 billion, according to the RBI’s Weekly Statistical Supplement.

"We had announced a series of measures in July to enhance forex inflow. As a result, new External Commercial Borrowing (ECB) agreements have been concluded for $8.6 billion," Das said.