India’s forex reserves rise for eighth week, reach $688 bn

India’s foreign exchange reserves continued their upward momentum for the eighth consecutive week, increasing by $1.983 billion to reach $688.129 billion during the week ended April 25, according to data released by the Reserve Bank of India (RBI) on Friday. The reserves had surged by $8.31 billion in the previous reporting week, taking the total to $686.145 billion. The latest rise further cements India’s strong external sector position, coming just months after the reserves had touched an all-time high of $704.885 billion in late September 2024.
A major contributor to the weekly rise was the increase in foreign currency assets (FCA), which went up by $2.168 billion to $580.663 billion. FCAs, the largest component of the forex reserves, are expressed in dollar terms and reflect the impact of movements in major global currencies such as the euro, pound, and yen.
However, the overall rise in reserves was partially offset by a decline in gold reserves, which fell by $207 million to $84.365 billion during the week. The Special Drawing Rights (SDRs) rose by $21 million to $18.589 billion, while India’s reserve position with the International Monetary Fund (IMF) increased slightly by $2 million to $4.512 billion.
Analysts view the sustained build-up in reserves as a sign of robust capital inflows and central bank intervention to manage volatility in the currency market. The strong reserve position also provides India with a comfortable buffer to manage external shocks and maintain currency stability.

(Business Correspondent)