India's foreign exchange reserves have experienced a significant surge, reaching $636.09 billion in the week ending march 8, 2024, marking an increase of over $10 billion. This places India's forex reserves just $9 billion short of the previous all-time high of $645 billion. According to data released by the reserve bank of india (RBI) on march 15, 2024, foreign exchange reserves witnessed a notable uptick, rising by $10.47 billion to $636.095 billion compared to the previous week's $635.62 billion.
Notably, foreign currency assets increased by $8.12 billion during this period, totalling $562.35 billion. RBI's data also indicates an increase in gold reserves, rising by $2.29 billion to $50.71 billion. Additionally, Special Drawing Rights (SDR) saw a $31 million increase to reach $18.21 billion, while reserves with the international Monetary Fund (IMF) rose by $19 million to $4.81 billion.
It's worth noting that in october 2021, RBI's forex reserves had reached $645 billion. However, following the onset of the Russia-Ukraine conflict and subsequent spikes in commodity prices, RBI's forex reserves experienced a decline, dropping to $525 billion. RBI intervened to stabilize the rupee against the dollar, resulting in fluctuations in forex reserves.
The indian rupee has displayed weakness against the dollar in the currency market, closing at 82.88 against one dollar, marking a 5 paise depreciation. As the forex market continues to evolve, monitoring RBI's interventions and forex reserves remains crucial for understanding currency dynamics.
