India's forex reserves rebound reach $641.59 billion in May

India's foreign exchange reserves saw a significant resurgence, bolstering confidence in the nation's economic stability. In a report published by the Reserve Bank of India (RBI) on Friday, India’s forex reserves increased by $3.66 billion to $641.59 billion as of May 03 (after 3 consecutive weeks of drop),up from a previous contraction of $2.41 billion.Previously, forex reserves contracted by $2.41 billion to $637.92 billion, for the third consecutive week as on April 26, 2024, according to estimates.
Foreign currency assets (FCAs) also surged by $4.45 billion to $564.16 billion. Gold reserves dropped by $653 million to $54.88 billion, while SDRs increased by $2 million to $18.05 billion. Reserve position in the IMF decreased by $140 million to $4.499 billion, stated report.
Analysts view this rebound as a positive sign for India's economy, showcasing its ability to navigate challenges and maintain stability in the forex market. The sustained growth in reserves reflects positively on India's economic outlook and reinforces its position as a resilient player in the global economy.
Other Key Event
RBI on Friday appointed R Lakshmi Kanth Rao as Executive Director.Prior to being promoted as ED, Rao was serving as Chief General Manager-in- Charge in the Department of Regulation, RBI said in a statement.

( Ira Singh, Asstt Editor, Gandhinagar)