India forex reserves hit record high on RBI steps to attract US dollars
The Reserve Bank of India reported a $12.4 billion increase in forex reserves, reaching a record high of $729.3 billion as of August 21. This surge, driven by RBI's initiatives including a special deposit program, has attracted $72.8 billion in inflows, helping to stabilize the rupee amid high oil prices. However, the cost of attracting these dollars is significant, raising concerns about long-term sustainability.