New Delhi: India’s foreign exchange reserves rebounded sharply in the first week of April, reversing the previous week’s decline, as the country’s forex reserves rose by USD 9.063 billion, according to data released by the Reserve Bank of India (RBI) on Friday.
The country’s forex jumped to USD 697.121 billion for the week ended April 3. This comes after a significant drop of USD 10.288 billion in the preceding week ended March 27, when reserves had slipped to USD 688.058 billion.
The latest increase was driven by gains across key components of the reserve basket. Gold reserves recorded a sharp rise of USD 7.221 billion, taking their total value to USD 120.742 billion.
Foreign currency assets (FCA), the largest component of the reserves, also increased by USD 1.784 billion to USD 552.856 billion, according to the central bank’s data.
FCA includes assets denominated in major global currencies such as the US dollar, euro, yen and pound, with values expressed in dollar terms.
Additionally, special drawing rights (SDRs) saw a marginal increase of USD 58 million to USD 18.707 billion during the week.
India’s reserve position with the International Monetary Fund remained unchanged at USD 4.816 billion.
Despite the recent volatility, India’s forex reserves remain below their all-time high of USD 728.494 billion, which was recorded in the week ended February 27, before the onset of the West Asia crisis that triggered a phase of depletion.
Foreign exchange reserves play a crucial role in maintaining economic stability, helping the central bank manage currency fluctuations and ensuring smooth external trade.
A robust reserve position allows the RBI to intervene in the currency market to support the rupee during periods of volatility, while also reflecting sustained inflows of foreign currency into the economy.
Meanwhile, in the week ended February 27, India’s foreign exchange reserves surged by USD 4.885 billion to an all-time high of USD 728.494 billion, according to RBI earlier data.
