India's forex reserves soar by $9.9 billion to $716.90 billion as on August 14

India's foreign exchange reserves jumped by $9.905 billion to $716.90 billion during the week ended August 14, official data released by the Reserve Bank of India showed on Friday.

The reserves had risen $14.1 billion to $707 billion a week earlier, marking the highest level in the current fiscal year.

The latest increase came as inflows from the RBI's FCNR(B) deposit scheme began to reflect in the country's forex kitty.


Foreign currency assets, the largest component of the reserves, rose $7.2 billion to $581.85 billion, making the biggest contribution to the overall increase.

Meanwhile, gold reserves surged by $2.67 billion to $111.41 billion, providing another significant boost.

Special drawing rights (SDRs) declined marginally by $5 million to $18.740 billion, while India's reserve position in the International Monetary Fund (IMF) increased by $5 million to $4.89 billion.

The latest build-up follows stronger-than-expected foreign currency inflows through the RBI's special deposit scheme.

Last week, the central bank shortened the window for its FCNR(B) deposit swap facility by a month to August 31 after receiving $56.8 billion in foreign currency inflows under the scheme, including $52 billion through FCNR(B) deposits.

At $716.90 billion, India's reserves remain below their peak of around $728 billion recorded earlier this year. Further inflows through FCNR(B) deposits and external commercial borrowings (ECBs), with the RBI's special window now valid until August 31, are expected to provide additional support to the country's reserves.