India's Forex Reserves Hit Historic $651.5B High: RBI's Reassuring Report

India's foreign exchange reserves have surged to a record-breaking $651.5 billion as of May 31, 2023, up by $4.83 billion from the last reported figure. Reserve Bank Governor Shaktikanta Das announced the milestone while detailing improvements in key external vulnerability indicators. The external sector is described as resilient, with the current account deficit projected to remain sustainable.

India's foreign exchange reserves have soared to an unprecedented $651.5 billion as of May 31, Reserve Bank Governor Shaktikanta Das revealed on Friday.

The overall reserves have risen by $4.83 billion since the last reported $646.673 billion on May 24.

Das declared, "Touching a new milestone, India's foreign exchange reserves reached a historical high of $651.5 billion as of May 31," during his bimonthly policy review announcement.

Previously, the highest reserve level was $648.7 billion as of May 17.

Das emphasized the resilience of the country's external sector. Citing improvements in the current account deficit, external debt to GDP ratio, and net international investment position, he noted ongoing enhancements in key external vulnerability indicators.

He assured, "Overall, we remain confident of meeting our external financing requirements comfortably."

The current account deficit for FY25 is expected to stay within sustainable levels, supported by remittances, services exports, and a reduced trade deficit, according to Das.