RBI MPC: India's forex reserves rise by $4.8 bn to record high of $651.5 bn as of May 31

India’s forex reserves rose by $4.8 billion to a record high of $651.5 billion as of May 31, the Reserve Bank of India (RBI) Governor Shaktikanta Das announced on Friday along with key decisions on the monetary policy.

As of May 24, the RBI had reported a dip of $2 billion to $646.67 billion to come off the previous all-time high of $648.7 billion.

"India's external sector remains resilient and the key external vulnerability indicators continue to improve," Das said.


He added, "Overall, we remain confident of meeting our external financing requirements comfortably."

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by$ 5.065 billion to $572.56 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves contracted by $212 million to $56.50 billion, whereas SDRs were down by $17 million to $18.11 billion.

Reserve in the IMF dipped by $1 million to $4.32 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.