Dollar filled India's coffers, forex reserves jumped... !
Good news has come for the indian economy. On Friday, the reserve bank of india (RBI) gave information that India's foreign exchange reserves i.e. forex reserves increased by $305 million to $654.271 billion in the week ended march 14. In the previous week, India's forex reserves had increased by a sharp $15.267 billion, which was the biggest weekly jump in the last two years.
Forex reserves increased in difficult times
This recent increase in the reserve has come after a period when the reserves saw a decline due to intervention in the forex market to stabilize the rupee and currency revaluation. RBI's $10 billion forex swap played an important role in the jump in the reserves last week. Let us tell you that in september 2024, India's forex reserve reached a record level of $704.885 billion.
What increased and how much?
Foreign currency assets (FCA): Increased by $96 million to $557.186 billion. FCA includes the effect of fluctuations in the value of the US dollar against the euro, pound and yen.
Gold reserves: Increased by $66 million to $74.391 billion.
Special drawing rights (SDR) with the IMF: Increased by $51 million to $18.262 billion.
India's reserve position with the IMF: Increased by $283 million to $4.431 billion.
Amid fluctuations in the global currency market, the RBI is keeping an eye on the forex reserves to maintain stability in the indian economy.
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