India’s FOREX Reserves Witness a Surge to Reach $584 Billion, the Highest in 9 Month

India’s foreign exchange reserves surged to $584.76 billion after an increment of $6.3 billion in the week ended 7 April, as per the statistical supplement provided by the Reserve Bank of India (RBI) on Friday. This data revealed that the country’s FOREX reserves have reached their highest point in the last nine months. However, the previous week’s report indicated a downfall of $329 million, breaking the two-week continuous growth streak, and resulting in the FOREX exchange reserves standing at $578.45 billion.

Also Read: 15 April 2023: Petrol And Diesel Prices Remain Unchanged Today, Check Rates Of Your City

India’s foreign exchange reserves (FOREX) attained an unprecedented high of $645 billion in In October 2021. However, these reserves have been decreasing due to the central bank’s utilization of the funds to support the rupee against the impact of global developments. The Weekly Statistical Supplement shared by the RBI on Friday highlights that the foreign currency assets, a crucial constituent of the reserves, rose by $4.74 billion and amounted to $514.431 billion for the week concluded on April 7th.

When measured in US dollars, the foreign currency assets consist of the impact of the increase or decrease in value of non-US currencies such as the yen, pound, and euro held within the foreign exchange reserves. As per the RBI’s statement, there was a $1.496 billion surge in gold reserves, and the total now stands at $46.696 billion. Additionally, the apex bank also confirmed that the Special Drawing Rights (SDRs) increased by $58 million, bringing the total to $18.45 billion.

Also Read: Nirmala Sitaraman Expects India’s GDP to Surpass 6% in FY24, But Warns of Global Growth Uncertainties

To prevent abrupt fluctuations in the rupee’s value, the central bank steps in the spot and forwards markets. The adjustments in FOREX reserves can also be due to valuation losses or gains. During the week in question, the rupee experienced a 0.3% increase against the US dollar, with a trading range of 81.8300 to 82.4550 against the dollar.

On Thursday, the rupee closed at 81.85 and registered a fourth consecutive weekly increase during the week ending on April 14, which was a shortened week due to holidays. The information provided highlights that the nation’s reserve position with the IMF escalated by USD 13 million, totaling to USD 5.178 billion in the reported week.