In a major financial development, India’s foreign exchange reserves registered their highest weekly leap in more than three years during the week concluding on March 7. According to the Reserve Bank of India, forex reserves rocketed by USD 15.267 billion, reaching USD 653.966 billion.
Previously, the reserves witnessed a decline spanning approximately four months, even touching an 11-month nadir. This downturn, followed by subsequent fluctuations and volatility, has stabilized as reserves are about 7 percent below their all-time zenith of USD 704.89 billion in September.
The Reserve Bank of India’s proactive measures to curtail Rupee depreciation have likely driven this decline. At present, the Indian Rupee remains near its historic low against the US dollar. Data reveals that foreign currency assets, the preeminent segment of forex reserves, stand firm at USD 557.282 billion. Meanwhile, gold reserves total USD 74.325 billion, ensuring adequacy for about 10-11 months of future import demands.
(With inputs from agencies.)
