Country’s foreign exchange reserves surged $1.17 billion to touch a new record high of $355.46 billion in the week to June 19, on the back of jump in foreign currency assets, according to RBI data.
In the previous reporting week, the forex reserves had risen $1.574 billion to $ 354.28 billion.
For the week under review ending June 19, foreign currency assets, a major component of overall reserves, swelled $1.135 billion to $ 330.71 billion in the reporting week, the data showed.
The country’s forex reserves are above traditional levels, but the country’s peculiar characteristics and experience in recent crises suggest that about $ 60 billion more could buffer sufficiently a prolonged global financial tightness, according to an HSBC report.
“We estimate an additional $ 60 billion of reserves, taking overall holdings to $ 420 billion, could take care of key vulnerabilities such as unhedged external commercial debt, short-term external debt and portfolio outflows,” the report said.
During the week, the country’s gold reserves remained unchanged at $ 19.34 billion.
The special drawing rights were up by $ 26.6 million to $ 4.07 billion while the country’s reserve position with the International Monetary Fund surged $ 8.5 million to $ 1.32 billion, RBI data showed.