The country's treasury received a huge amount of wealth, foreign exchange reserves reached $698.27 billion

Business News: The retail inflation data released on Friday in India may have disappointed a bit, but in the meantime the Reserve Bank of India (RBI) has reduced the concerns. RBI said that till September 5, India's foreign exchange reserves have increased by $ 4.03 billion to $ 698.26 billion. Earlier, till the week ending on August 29, it was $ 694.23 billion.

On the other hand, government data showed that retail inflation in August rose to 2.07 percent as compared to 1.61 percent in July. These figures have come at a time when India is facing a massive 50 percent tariff imposed by the US.

Gold reserve increased so much

According to RBI data, foreign currency assets (FCA), which are the biggest part of the reserves, rose by $540 million to $584.47 billion. Apart from the dollar, these assets also include other currencies like Euro, Pound and Yen. Not only this, gold reserves rose by $3.53 billion to $90.29 billion this week. Special Drawing Rights (SDR) fell by $34 million to $18.74 billion. India's reserve position in the IMF increased by $2 million to $4.75 billion.

Why does RBI buy and sell dollars?

RBI intervenes in the foreign exchange market when needed. For this, it sells or buys dollars so that the sharp fluctuations in the rupee can be stopped. Officials say that this intervention is not done to fix any particular rate, but to keep the market stable.

The figures come every week

In India, the data of foreign exchange reserves is released every week. This data is released by RBI every Friday evening. It contains the data till the previous week. That is, the data comes with a delay of one week. It contains information about four things, such as foreign exchange assets, gold reserves, special drawing rights (SDRs) and reserve position kept in IMF.