India's Forex reserves rise by $305 million to $654.271 billion

India’s foreign exchange reserves witnessed a marginal rise of $305 million, reaching $654.271 billion for the week ending March 14, according to data released by the Reserve Bank of India (RBI) on Friday. According to information,this follows a substantial increase of $15.267 billion in the previous week, marking the sharpest weekly gain in two years.. A key factor behind the earlier surge was the $10 billion forex swap conducted by the central bank.
The country’s forex reserves had been experiencing a downward trend in recent weeks, driven by revaluation effects and RBI’s market interventions aimed at reducing volatility in the rupee. Despite these fluctuations, India’s reserves remain significantly above historical levels, with the highest-ever figure recorded at $704.885 billion in September 2024.
A breakdown of the latest data shows that foreign currency assets (FCAs), the largest component of forex reserves, declined by $96 million to $557.186 billion. These assets reflect changes in the valuation of non-dollar currencies such as the euro, pound, and yen.
Meanwhile, gold reserves registered an increase of $66 million, reaching $74.391 billion. The country’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) also rose by $51 million to $18.262 billion, while India’s reserve position with the IMF saw a gain of $283 million, bringing the total to $4.431 billion,stated official release.

(Business Correspondent)