Forex Reserve: $15 billion jump in India’s foreign exchange reserves, highest increase in three years

New Delhi| There has been a huge jump in India’s foreign exchange reserves. According to Reserve Bank data, India’s foreign exchange reserves have increased by $15.267 billion last week, after which India’s total foreign exchange reserves have increased to $653.966 billion. This is the highest increase in a week in the last three years.

Foreign exchange reserves declined for almost four months and recently reached an 11-month low. After this, there were ups and downs, in which a few weeks of increase and a few weeks of decline were seen. Earlier in September last year, India’s foreign exchange reserves had touched an all-time high of $704.89 billion, but since then it has been in continuous decline and is currently seven percent below that highest level.

The decline in foreign exchange reserves is believed to be due to the intervention of the Reserve Bank, the purpose of which is to stop the sharp fall in the rupee. It is noteworthy that the Indian rupee has now fallen to an all-time low against the US dollar. India’s foreign currency assets (FCAs), the largest component of foreign exchange reserves, have peaked at US$557.282 billion, the latest RBI data showed. According to RBI data, gold reserves currently stand at US$ 74.325 billion.

According to estimates, India’s foreign exchange reserves are sufficient to cover the estimated imports of about 10-11 months. In 2023, India added about $58 billion to its foreign exchange reserves, compared to a decline of $71 billion in 2022. In 2024, reserves increased by a little over $20 billion.