India’s Forex Reserves Jump by $15.27 Billion, Biggest Weekly Gain in Three Years

New Delhi: India’s foreign exchange reserves saw a sharp increase, rising by $15.27 billion to reach $653.97 billion in the week ending March 7, 2025, according to the latest data released by the Reserve Bank of India (RBI). This marks the largest weekly surge in more than three years.

Breakdown of Forex Reserves

• Foreign Currency Assets (FCA): The major component of the reserves, FCA, climbed to $557.28 billion.
• Gold Reserves: The value of gold holdings increased to $74.33 billion.

The sharp rise comes after a prolonged period of volatility, during which forex reserves had been on a declining trend for nearly four months, recently hitting an 11-month low. The drop was largely due to RBI’s interventions to stabilize the rupee, which has been trading near its record-low levels against the US dollar.

India’s Forex Position Remains Strong

Despite recent fluctuations, India’s foreign exchange reserves remain strong, with the current levels estimated to cover 10-11 months of projected imports. In 2023, India added $58 billion to its reserves, a stark contrast to the $71 billion decline in 2022. So far in 2024, reserves have increased by more than $20 billion.

RBI’s Strategy in Managing Reserves

The RBI plays a crucial role in managing currency stability by buying dollars when the rupee strengthens and selling when it weakens. India’s reserves, held in major global currencies like the US Dollar, Euro, Japanese Yen, and Pound Sterling, serve as a buffer against economic shocks and exchange rate fluctuations.

This latest rise in forex reserves reflects India’s economic resilience and the RBI’s effective strategies in navigating global financial challenges.