India's forex reserves hit record $785.7 billion as reserves surge by $44.9 billion

India's foreign-exchange reserves reached a record $785.7 billion during the week ending September 4. This represents a weekly increase of $44.903 billion against the previous period. The Reserve Bank of India's latest statistical bulletin reports that total foreign currency assets stood at $648.168 billion for that reporting week alone, though the cumulative figure including prior months has reached the historic $785.7 billion mark. This makes India the fourth-largest holder of foreign reserves globally, trailing only China, Japan, and Switzerland. The surge was primarily fueled by a dedicated dollar-mobilization program which attracted $136.377 billion through special dollar-rupee swap facilities with banks over approximately two-and-a-half months. Inflows into Foreign Currency Non-Resident Bank deposits also contributed significantly at $127.226 billion alone. Meanwhile, reserves held in gold contracted by $2.594 billion to $34.944 billion. RBI Governor Sanjay Malhotra stated that these inflows stabilized the foreign exchange market and improved sentiment. Central bank officials noted they sold $7.7 billion on the spot market in August to curb volatility but relied on inflows rather than purchases to grow the portfolio.