According to data released by the reserve bank of india (RBI), India's foreign exchange reserves witnessed a significant surge in the week ending march 15. The reserves increased by $6.39 billion, reaching $642.49 billion, merely $2.50 billion shy of the previous historical high.
In the week ending march 15, 2024, the country's foreign exchange reserves saw a remarkable rise of $6.396 billion, totaling $642.492 billion. Notably, within a span of 15 days, the reserves surged by $16.86 billion. The first week witnessed a $10.47 billion increase in foreign exchange reserves.
RBI data indicates a $6.03 billion surge in foreign currency assets, reaching $568.38 billion. Additionally, gold reserves increased by $425 million to $51.14 billion. Special Drawing Rights (SDR) also saw a $65 million increase, amounting to $18.27 billion. However, reserves with the international Monetary Fund (IMF) decreased by $129 million, standing at $4.68 billion.
India's foreign exchange reserves are now merely $2.50 billion short of the record high of $645 billion in october 2021. With an increase in foreign portfolio investment, it is anticipated that RBI's reserves may surpass the previous historical high next week.
The fluctuation in foreign exchange reserves can be attributed to various factors. The recent decline in reserves was influenced by the sharp rise in commodity prices following the Russia-Ukraine conflict, causing the reserves to plummet to $525 billion. RBI's intervention to stabilize the rupee against the dollar also impacts the reserves, as interventions aim to manage domestic currency fluctuations.
