Lagatar24 Desk
New Delhi: India’s foreign exchange reserves recorded a massive surge of $15.267 billion, reaching a total of $653.966 billion during the week ending March 7, marking the largest jump in over two years.
This sharp increase follows a $1.781 billion decline in the previous week, which had brought reserves down to $638.698 billion, according to a report by news agency PTI.
RBI’s $10 Billion Forex Swap Drives Surge
The primary reason behind the reserves boost is the $10 billion forex swap executed by the Reserve Bank of India (RBI) on February 28. In this transaction, the RBI purchased US dollars in exchange for rupees to ease liquidity and stabilize market conditions.
Breakdown of Forex Reserves Increase
• Foreign currency assets saw a major jump of $13.993 billion, reaching $557.282 billion. These assets include fluctuations in major currencies such as the euro, pound, and yen.
• Gold reserves increased by $1.053 billion, pushing the total to $74.325 billion.
• Special Drawing Rights (SDRs) grew by $212 million, reaching $18.21 billion.
• India’s reserve position with the International Monetary Fund (IMF) saw a minor decline of $69 million, standing at $4.148 billion.
India’s Forex Reserves at a Critical High
The sharp rise comes after months of declining forex reserves due to market interventions and currency revaluation. At their peak, India’s forex reserves had hit an all-time high of $704.885 billion in September 2024.
