India currency reserves (Forex) increased $ 1,567 billion to $ 677,835 billion in the week ending on April 4, extending profits for the sixth consecutive week, they showed the official data published by the Bank of the India Reserve (RBI).
According to the data published by RBI, for the week that ended on April 11, foreign currency assets increased by $ 892 million to $ 574.98 billion. Foreign currency assets are the main components of Forex reserves.
The Gold Reserve also saw an increase in the increase of $ 638 million to $ 79,997 billion of the week, suggests RBI data.
However, the Special Drawing Rights (SDR) saw a decrease in $ 6 million to $ 18,356 billion, according to the data. The compliance with the RBI estimates that India’s foreign exchange reserves are sufficient to cover approximately 10-11 months of projected imports.
The Indian currency market (Forex) has seen strong growth in recent years, with an average daily turnover that almost doubles $ 32 billion in 2020 to $ 60 billion in 2024.
In 2023, India added about $ 58 billion to its foreign exchange reserves, cons with an accumulated decrease or $ 71 billion in 2022. In 2024, the reserve increased a little more than $ 20 billion.
Currency reserves, or FX reserves are active in the possession of a central bank of nations or monetary authority, mainly in reserve currencies such as the US dollar, with smaller portions in the euro, the Japanese yen and the sterling pound.
The intervention RBI when managing liquuidity, including the sale of dollars, to avoid the strong depreciation of the rupee. The RBI strategically buys dollars when the rupee is strong and sells when weakens.
Posted on April 20, 2025