New Delhi, Feb 8 (IANS): The forex reserves rose $1.05 billion to reach $630.607 billion for the week ended January 31, according to the Reserve Bank of India (RBI) data.

The overall reserves had increased by $5.574 billion to $629.557 billion in the previous week. The forex reserves had increased to an all-time high of $704.885 billion in September last year.

Meanwhile, gold reserves went up by $1.242 billion to $70.893 billion during the week. The Special Drawing Rights (SDRs) were up by $29 million to $17.889 billion, the apex bank said.

The country’s reserve position with the IMF was down by $14 million at $4.141 billion in the reporting week.

The RBI bought another 8 tonnes of gold in November 2024, as Central banks around the world continued their buying spree with a collective purchase of 53 tonnes of the precious metal during the month, according to the latest World Gold Council (WGC) report.

The RBI has, like other central banks, been buying gold as a safe-haven asset. The strategy of holding gold is primarily aimed at hedging against inflation, and reducing foreign currency risks, especially in times of uncertainty triggered by geopolitical tensions.

The RBI uses the forex reserves to control the volatility in the rupee which results as hot money from the stock market flows out when foreign investors sell shares.

Meanwhile, the Central Bank has set up a nine-member Working Group to undertake a comprehensive review of trading and settlement timing of financial markets.

Over the last few years, there have been several developments including increased electronification of trading, availability of Forex and certain interest rate derivative markets on a 24X5 basis, increased participation of non-residents in domestic financial markets and availability of payment systems on a 24X7 basis.

The working group has representation from various stakeholders and is expected to submit its report by April 30 this year.