India’s foreign exchange (forex) reserves rose by $305 million to $654.271 billion for the week ending March 14, according to data released by the Reserve Bank of India (RBI) on Friday. This comes after a sharp increase of $15.267 billion in the previous week, marking the highest weekly surge in two years.
The recent growth in reserves follows a period of decline due to forex market interventions and revaluation effects aimed at stabilizing the rupee. The RBI’s $10 billion forex swap played a significant role in the previous week’s spike. Notably, India’s forex reserves had reached an all-time high of $704.885 billion in September 2024.
Breakdown of reserves
Foreign Currency Assets (FCA), the large$96 million to $557.186 billion. FCA includes the effect of currency fluctuations of the euro, pound, and yen against the US dollar.
Gold Reserves increased by $66 million, reaching $74.391 billion.
Special Drawing Rights (SDRs) with the IMF rose by $51 million to $18.262 billion.
India’s reserve position with the IMF increased by $283 million, standing at $4.431 billion.
With fluctuating global currency dynamics, the RBI continues to monitor forex reserves to maintain stability in the Indian economy.