India’s foreign exchange reserves rose for the third consecutive week, reaching $638.26 billion
Current Hunt Team
India’s foreign exchange reserves rose for the third consecutive week, reaching $638.26 billion.
On February 14, according to data released by the Reserve Bank of India (RBI), India’s foreign exchange reserves continued to increase for the third consecutive week, bringing an end to the months-long decline.
The country’s foreign exchange reserves increased by $7.65 billion to $638.261 billion in the week ended February 7.
The improvement comes after a sharp decline that saw stocks fall in 15 of the past 16 weeks, hitting an 11-month low.
India’s reserves have been declining steadily since hitting an all-time high of $704.89 billion in September, representing a drop of nearly 10% from the peak.
The main reason for this decline was attributed to the intervention by the RBI to stabilize the Indian rupee, which is at its record low against the US dollar.
The latest data showed that foreign currency assets (FCA), the biggest component of India’s forex reserves, stood at $544.106 billion, while gold reserves were valued at $72.208 billion.
In 2023, India adds about $58 billion to its reserves, a significant jump from the $71 billion drop seen in 2022.
In 2024, the reserves have so far increased by over $20 billion.
Foreign exchange reserves consist of assets held by the RBI in various reserve currencies such as the US dollar, euro, Japanese yen, and pound sterling, which are crucial for liquidity management and ensuring economic stability.
