RBI net buys $6.93 billion in July; forex reserve reaches new high

India's foreign exchange reserves expanded by $67 billion so far in 2024, the second highest among major foreign exchange reserves holding countries, after China

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The Reserve Bank of India (RBI) purchased a net total of $6.93 billion worth of foreign currency in July. It bought $23.56 billion and sold $16.63 billion of foreign currency in July, according to its monthly bulletin.

The central bank recorded a net sale of $2.10 billion in the spot market in June. It had net bought $3.47 billion in July 2023. In the previous financial year, the RBI bought a net $41.27 billion.

The RBI’s net outstanding forward sales by the end of July stood at $9.10 billion against $15.83 billion in June. The headline foreign exchange reserves, excluding the forward book, stood at $689 billion in the week ended September 13, the data showed.

The total foreign reserves rose by $223 million for the week ended September 13 to a new high of  $689.46 billion, on the back of the rise in gold reserves. Foreign currency assets decreased by $515 million. The reserves are equivalent to more than 12 months of imports for 2023-24 and more than 103 per cent of total external debt outstanding at the end of March 2024.

India's foreign exchange reserves have expanded by $67 billion so far in 2024, the second highest after China among major foreign exchange reserves-holding countries.