India's Forex Reserves See Sixth Week of Growth, Hitting $677.835 Billion

India's foreign exchange reserves increased by $1.567 billion, reaching $677.835 billion for the sixth consecutive week. The reserves, which include foreign currency assets, gold reserves, and SDRs, saw notable changes. The RBI notes these reserves cover 10-11 months of imports, highlighting India's robust forex market.

India's foreign exchange reserves surged by $1.567 billion, reaching an impressive $677.835 billion for the week ending April 4, marking a sixth consecutive week of growth, according to official Reserve Bank of India (RBI) data.

RBI figures reveal that foreign currency assets, which form the lion's share of India's forex reserves, rose by $892 million to $574.98 billion. Meanwhile, gold reserves climbed by $638 million, totaling at $79.997 billion. However, the Special Drawing Rights (SDRs) experienced a slight dip, falling by $6 million to $18.356 billion.

The RBI estimates that these reserves are sufficient to support approximately 10-11 months of projected imports. In recent years, India's forex market has experienced significant growth, with average daily turnover rising from $32 billion in 2020 to around $60 billion in 2024.

Notably, India's forex reserves saw an addition of about $58 billion in 2023, starkly contrasting with a reduction of $71 billion in 2022. The current year has seen a further rise of over $20 billion. The RBI actively manages these assets, primarily held in major currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling, to maintain currency stability.

(With inputs from agencies.)