India's foreign exchange reserves rose by $ 15 billion, the highest increase in three years
Forex Reserve: The foreign exchange reserves declined for about four months and recently reached an 11-month low. After this, it fluctuated, in which some weeks saw an increase and some weeks a decline.
India's foreign exchange reserves have jumped tremendously. According to Reserve Bank data, India's foreign exchange reserves increased by $ 15.267 billion last week, after which India's total foreign exchange reserves reached $ 653.966 billion. This is the highest increase in a week in the last three years.
The foreign exchange reserves dropped for almost four months and in recent times touched an 11-month low level. After this, it remained volatile where some weeks showed an increase and some weeks a decrease. Earlier in September of the previous year, Indian reserves had touched an all-time level of $704.89 billion but have been declining ever since and are now at a level seven percent below their peak level.
The reason for the decline in the reserves of the foreign exchange is believed to be Reserve Bank intervention with a view to preventing a free fall in the rupee. It should be noted that the Indian rupee has reached an all-time low against the US currency. Recent statistics made public by the RBI showed that the foreign currency assets (FCA), the country's largest portion of the reserves in the foreign exchange, have reached US$557.282 billion. RBI statistics show the country's reserves in gold at US$74.325 billion.
According to estimates, India's foreign exchange reserves are sufficient to cover about 10-11 months of estimated imports. In 2023, India added about $58 billion to its foreign exchange reserves, while in 2022 it had declined by $71 billion. In 2024, reserves increase to a little over $20 billion.
