India’s forex reserves rise for sixth straight week, now at $677.84 billion: RBI

India’s forex reserves rise for sixth straight week, now at $677.84 billion: RBI
India’s foreign exchange reserves rose for the sixth consecutive week, climbing by $1.567 billion to reach $677.835 billion in the week ending April 4, according to data released by the Reserve Bank of India (RBI).
This steady increase reinforces the central bank’s position to manage external shocks and currency volatility.
The rise was mainly driven by an increase in foreign currency assets (FCAs), which grew by $892 million to $574.98 billion in the week ending April 11. FCAs are the largest component of India's forex reserves and include assets held in major global currencies, such as the US Dollar, Euro, Pound Sterling and Japanese Yen.
Gold reserves also saw a substantial rise, surging by $638 million to reach $79.997 billion during the same week, according to the RBI data. However, the Special Drawing Rights (SDRs) witnessed a slight decline of $6 million, now standing at $18.356 billion.
The central bank's data also shows that India’s current reserves are sufficient to cover roughly 10 to 11 months of projected imports, offering a robust buffer against global uncertainties.
India’s forex market has experienced rapid expansion in recent years. As per RBI estimates, the average daily turnover in the forex market nearly doubled from $32 billion in 2020 to about $60 billion in 2024, reflecting the deepening of the market and rising investor interest.
In terms of yearly trends, India added about $58 billion to its reserves in 2023, a sharp turnaround from the $71 billion decline seen in 2022. In 2024 so far, the reserves have risen by over $20 billion, suggesting steady inflows and prudent reserve management by the RBI.
The RBI continues to actively manage the forex market through strategic interventions. It typically purchases US dollars when the Rupee strengthens and sells them when the currency weakens, thereby containing extreme volatility and ensuring liquidity.