This miracle happened for the first time in 2 years, there was a huge jump in India’s foreign treasury, know how much the country’s currency reserves reached

There has been a big jump in India’s foreign exchange reserves. According to the recent report of the Reserve Bank of India (RBI), India’s forex reserves increased by $ 15.26 billion to $ 653.96 billion in the week ended March 7. This is the biggest weekly increase in the last two years.

Earlier, in the week ended March 1, India’s foreign exchange reserves had declined by $ 1.78 billion, leaving it at $ 638.69 billion. The reason for the recent decline in forex reserves was the intervention made by the Reserve Bank of India in the market to maintain the stability of the rupee. In September 2024, India’s foreign exchange reserves reached its all-time high of $ 704.88 billion.

According to experts, the main reason for the increase in forex reserves this time is the $ 10 billion forex swap done by RBI on February 28. Under this swap, RBI bought US dollars in exchange for rupees, which increased liquidity in the market and increased the currency reserves.

Forex reserve is the total reserve of foreign currencies, gold, IMF SDRs and other international assets available with any country. It is used to maintain currency stability, manage foreign payment balance and prevent economic crisis.

Decrease in gold reserves

According to Reserve Bank data, foreign currency assets, a major part of the foreign exchange reserves, increased by $ 13.99 billion to $ 557.28 billion in the week under review. Foreign currency assets mentioned in dollar terms include the effect of fluctuations in non-US currencies like euro, pound and yen held in the foreign exchange reserves.

However, the value of gold reserves decreased by $ 1.05 billion to $ 74.32 billion in the week under review. Special Drawing Rights (SDR) increased by $212 million to $18.21 billion. According to the data of the Reserve Bank of India, India’s reserve with the International Monetary Fund (IMF) increased by $69 million to $4.14 billion during the week under review.