According to the latest data released by the Central Bank of India, as of September 18, its foreign exchange reserves reached 545.038 billion US dollars, an increase of US $3378 billion compared with a week ago.
The reserve of the Central Bank of India consists of foreign exchange assets, gold and special drawing rights (SDR) of the International Monetary Fund. Foreign exchange assets of the Central Bank of India rose by $3.943 billion to $501.464 billion during the reporting week, according to data.
In June, India's foreign exchange reserves exceeded $500 billion for the first time in history, according to data.
Many market analysts pointed out that the substantial growth of India's foreign exchange reserves is mainly due to the large amount of US dollars purchased by the central bank in recent months and the concentration of foreign investment into India.
Industry observers believe that the reason why the Central Bank of India purchased foreign exchange and intervened in the market is to enhance the ability to deal with financial problems in difficult times by increasing foreign exchange reserves, and to enhance the confidence of overseas investors. The Central Bank of India also hopes to increase market liquidity by increasing foreign exchange reserves, while stabilizing foreign exchange market volatility.