India’s Forex Reserves Grow by $10.47 Billion

India’s foreign exchange reserves surged by $10.47 billion to reach $636.095 billion for the week ending March 8, as reported by the Reserve Bank on Friday. In October 2021, the country’s forex reserves had hit a record high of USD 645 billion. The reserves experienced a decline as the central bank utilized them to support the rupee against pressures primarily arising from global developments since the previous year.

During the week ending March 8, foreign currency assets, a significant component of the reserves, rose by $8.121 billion to $562.352 billion, according to the Reserve Bank of India (RBI).

In terms of dollar value, foreign currency assets encompass the impact of appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the foreign exchange reserves. The RBI noted that gold reserves increased by $2.299 billion to $50.716 billion during the week.

Additionally, Special Drawing Rights (SDRs) rose by $31 million to $18.211 billion, as stated by the apex bank.

India’s reserve position with the International Monetary Fund (IMF) also grew by $19 million to $4.817 billion during the reporting week, as per central bank data.