India’s Forex Reserves Hit New High, Rising For Seventh Consecutive Week

India’s foreign exchange reserves reached a new record high of USD 648.562 billion in the week ending April 5, marking the seventh consecutive weekly increase, according to the latest data from the Reserve Bank of India (RBI).

Before the week ending on April 5, the foreign exchange reserves stood at USD 645.583 billion. The central bank’s weekly statistical data revealed that India’s foreign currency assets (FCA), the largest component of the forex reserves, grew by USD 549 million to USD 571.166 billion.

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During the same week, gold reserves increased by USD 2.398 billion to USD 54.558 billion. In 2023, the RBI added around USD 58 billion to its foreign exchange reserves, following a cumulative decline of USD 71 billion in 2022.

As of 2024, the forex reserves have risen by approximately USD 28 billion on a cumulative basis. Forex reserves, also known as foreign exchange reserves (FX reserves), are assets held by a nation’s central bank, primarily in reserve currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling.

India’s foreign exchange reserves last peaked in October 2021, with subsequent declines attributed partly to increased import costs in 2022. The decrease in reserves could also be associated with the RBI’s periodic interventions in the market to counter sharp fluctuations in the rupee’s value against the US dollar.

The RBI monitors foreign exchange markets closely and intervenes as needed to maintain stable market conditions and prevent excessive volatility in exchange rates, without adhering to specific target levels or bands.

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