Daijiworld Media Network - Mumbai

Mumbai, Feb 22: India’s foreign exchange (forex) reserves surged by $8.663 billion to an all-time high of $725.727 billion for the week ended February 13, according to data released by the Reserve Bank of India (RBI).

The value of gold reserves, a key component of the country’s forex holdings, increased by $4.990 billion to $128.466 billion during the reporting week.

Foreign Currency Assets (FCA), the largest component of the forex reserves, rose by $3.550 billion to $573.603 billion. FCA includes the US dollar along with other major global currencies such as the yen, euro and pound, with their values expressed in dollar terms.
The value of Special Drawing Rights (SDRs) increased by $103 million to $18.924 billion, the RBI data showed.

Foreign exchange reserves are crucial for a country as they reflect its economic strength and provide a buffer against external shocks. They also play a significant role in maintaining stability in the currency exchange rate and ensuring confidence in the financial system.