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Key Points

India’s forex reserves rose for the eighth consecutive week, reaching $688.13 billion, though still below the September 2023 peak. Foreign currency assets grew by $2.16B, while gold reserves dipped slightly. The RBI’s strategic interventions aim to cushion the rupee, which remains near historic lows against the dollar. Reserves now cover nearly a year of imports, reflecting stronger buffers than 2022’s $71B decline.

Key Points: India Forex Reserves Rise to $688B Marking 8th Weekly Gain

  • Forex reserves up $1.98B to $688.13B
  • Gold reserves dip $207M
  • Rupee near all-time low vs dollar
  • RBI actively manages liquidity to stabilize currency
2 min read

India's forex reserves climb for 8th straight week, rise by USD 1.98 billion to USD 688.13 billion

RBI data shows India’s forex reserves climb by $1.98B to $688.13B, nearing record highs despite gold dip and rupee pressures.

"India’s forex reserves now cover 10-12 months of imports – RBI estimate"

Mumbai, May 4

India's foreign exchange reserves (Forex) rose by USD 1.983 billion to USD 688.129 billion in the week that ended on April 25, extending gains for the eighth straight week, official data released by the Reserve Bank of India (RBI) this week showed.

Despite eight consecutive rises in the Forex the reserve remained below the all time high of USD 704.885 billion which was achieved in the last September previous year.

The RBI data shows that foreign currency assets (FCAs) witnessed an uptick of USD 2.168 billion reaching at USD 580.663 billion.

The FCAs are the largest components of the foreign exchange reserves which reflects the valuation impact of non-US currencies like euro, pound, and yen kept in the reserves. They are written in the dollar terms.

In the reported week, the gold reserves with the RBI declined by USD 207 million, standing atUSD 84.365 billion. The Special Drawing Rights (SDRs), which are kept with the International Monetary Fund (IMF), witnessed a rise reaching USD 18.589 billion, up USD 21 million in the reporting week.

India's foreign exchange reserves rose USD 8.310 billion to USD 686.145 billion in the week that ended on April 18.

The forex reserves started falling after reaching an all-time high of USD 704.89 billion in September, only to recover afterwards. The decline in reserves was most likely due to RBI intervention, aimed at preventing a sharp depreciation of the Rupee. The Indian Rupee is now at or near its all-time low against the US dollar.

An estimate by the apex bank suggests that India's foreign exchange reserves are sufficient to cover approximately 10-12 months of projected imports.

In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022.In 2024, the reserves rose by a little over USD 20 billion.

Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.

The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The Central bank strategically buys dollars when the Rupee is strong and sells when it weakens.

- ANI

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Reader Comments

R
Rahul K.
Good to see our forex reserves growing steadily! 💪 This gives us a strong cushion against global economic shocks. Though I wish RBI would focus more on strengthening the rupee - it's painful to see petrol prices keep rising due to dollar rates.
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Priya M.
The numbers look impressive but we must remember China has over $3 trillion in reserves. While growth is good, we shouldn't celebrate too early. Also concerned about the gold reserves declining - gold is the safest asset in turbulent times.
A
Amit S.
Forex growth is positive but what about the rupee value? ₹83.5 per dollar is making imports expensive. RBI should balance between building reserves and maintaining currency stability. Common people are feeling the pinch in fuel and electronics prices.
S
Sunita R.
As someone who works in exports, I can say strong forex reserves give confidence to international buyers. But the government should use some of these reserves to boost manufacturing - we need to reduce dependence on imports for electronics and defense equipment.
V
Vikram J.
The RBI is doing a tightrope walk - building reserves while managing rupee volatility. Not an easy task with global uncertainties. Hope we can cross the $700 billion mark soon and sustain it. That would be a real achievement for our economy 🇮🇳
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Neha P.
While the numbers look good, I wonder how much of this is due to NRI deposits and how much from genuine trade surplus. We need to focus on increasing exports rather than just relying on remittances and FII flows for forex accumulation.

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