The latest $100 billion has been added to the reserves in three and a half years after they crossed the $300-billion level on April 2014.
In nominal terms, foreign exchange reserves have increased by $6.6 billion during the first quarter. The reserves have risen by $30 billion since Urjit Patel took charge as RBI Governor.
According to the RBI data, the reserves — which comprise foreign currency assets (FCAs), gold and special drawing rights with the International monetary fund .stood at $400.7 as on September 8. The highest contribution to the reserves has been from foreign portfolio investors.
foreign direct investment surged by $7.2 billion in the reporting period from $3.9 billion in the same period last year. Foreign institutional investment flows increased by $11.9 billion in the first quarter from $1.2 billion in the same period last year.
The central bank’s buildup of reserves comes ahead of the US Federal Reserve exiting its stimulus — a move which is expected to result in funds moving back into US dollar assets.