India’s Forex Reserves Rise For Eighth Consecutive Week; Reach $688 Billion

According to data released by the Reserve Bank of India (RBI), India’s foreign exchange reserves climbed by $1.983 billion to $688.129 billion for the week ending 25 April, marking the eighth consecutive weekly gain.

Despite the continued upward trend, the reserves remain below the all-time high of $704.885 billion recorded in September last year.

The latest figures show a notable rise in foreign currency assets (FCAs), which increased by $2.168 billion to reach $580.663 billion.

Non-dollar currencies such as the euro, pound, and yen influence the value of FCAs, which form the largest portion of the reserves, recorded in US dollar terms

During the same week, India’s gold reserves dropped by $207 million, settling at $84.365 billion.

Meanwhile, the Special Drawing Rights (SDRs) held with the International Monetary Fund rose by $21 million, bringing the total to $18.589 billion.

In the previous week, ending 18 April, the reserves had surged by $8.310 billion to reach $686.145 billion.

After peaking in September, India’s forex reserves witnessed a dip, largely attributed to RBI’s efforts to manage exchange rate volatility and support the rupee, which has been hovering near its record low against the US dollar.

According to RBI estimates, the current reserve level is sufficient to cover around 10 to 12 months of projected imports.

In 2023, India added nearly $58 billion to its reserves, reversing a fall of $71 billion in 2022.

In 2024 so far, reserves have increased by just over $20 billion.

What Are Forex Reserves?

Foreign exchange reserves are assets held by the central bank, typically in reserve currencies such as the US dollar, along with smaller holdings in the euro, yen, and pound sterling.

The RBI actively manages these reserves, purchasing dollars when the rupee strengthens and selling them during periods of depreciation to stabilise the currency.

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