India’s forex reserves jump $8.31 billion to $686.15 billion
New Delhi: India's foreign exchange reserves rose by USD 8.310 billion to USD 686.145 billion in the week ending April 18, according to data released by the Reserve Bank of India (RBI).
This marks the seventh consecutive week of gains in forex reserves. Prior to this recovery, reserves had seen a decline for nearly four months after reaching an all-time high of USD 704.89 billion in September. The fall was likely due to RBI interventions aimed at curbing sharp depreciation of the Rupee, which is now trading at or near its historic low against the US Dollar.
The latest RBI data showed that India's foreign currency assets (FCA), the largest component of the forex reserves, stood at USD 578.49 billion. Gold reserves currently amount to USD 84.572 billion.
Estimates indicate that India's foreign exchange reserves are sufficient to cover about 10–12 months of projected imports.
In 2023, India added approximately USD 58 billion to its forex reserves, in contrast to a cumulative decline of USD 71 billion in 2022. In 2024 so far, reserves have risen by a little over USD 20 billion.
Foreign exchange reserves are assets held by a country's central bank, primarily in reserve currencies such as the US Dollar, and to a smaller extent in the Euro, Japanese Yen, and Pound Sterling.
The RBI typically manages liquidity by buying dollars when the Rupee strengthens and selling when it weakens to stabilise the currency.
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