India’s foreign exchange reserves saw a significant jump of USD 15.267 billion, reaching a total of USD 653.966 billion during the week ending March 7, marking the largest increase in over two years.
This surge follows a decline of USD 1.781 billion in the previous week, which brought reserves down to USD 638.698 billion, news agency PTI reported.
The recent boost in reserves is largely attributed to a USD 10 billion forex swap executed by the Reserve Bank of India (RBI) on February 28. In the swap, the central bank purchased dollars in exchange for rupees, a move aimed at easing liquidity and stabilizing market conditions.
The overall rise in reserves was mainly driven by a significant increase in foreign currency assets, which climbed by USD 13.993 billion to USD 557.282 billion. These assets include the impact of fluctuations in non-US currencies such as the euro, pound, and yen.
India’s gold reserves also saw an uptick, rising by USD 1.053 billion to USD 74.325 billion during the week. Meanwhile, the Special Drawing Rights (SDRs) increased by USD 212 million, reaching USD 18.21 billion.
However, India’s reserve position with the International Monetary Fund (IMF) declined slightly by USD 69 million, standing at USD 4.148 billion, according to the RBI data.
This sharp rise comes after India’s forex reserves had been on a declining trend due to market interventions and revaluation. At their peak, India’s forex reserves reached an all-time high of USD 704.885 billion in September 2024.