Biggest jump in foreign exchange reserves in 2 years!
There has been a strong increase in foreign exchange reserves. In the week ended march 7, 2025, foreign exchange reserves have seen a jump of more than $15 billion in a single week, which is the highest in two years. To handle the selling by foreign investors and the fall in rupee against the dollar, RBI had sold dollars, due to which there was a big decline in foreign exchange reserves.
According to the Reserve bank of India, the country's foreign exchange reserves have increased by $15.26 billion to $653.96 billion during the week ended march 7, the fastest jump in two years. Last week, the country's foreign exchange reserves fell by $1.78 billion to $638.69 billion. Foreign exchange reserves had reached an all-time high of $704.88 billion at the end of september 2024. But the reserves have been on a declining trend recently due to revaluation as well as intervention in the foreign exchange market by the RBI to help reduce volatility in the rupee.
According to RBI data, the sharp increase in foreign exchange reserves during the week under review is attributed to the $10 billion foreign exchange swap done by the central bank on february 28, when it bought dollars against rupees to increase liquidity in the system. According to Reserve bank data, foreign exchange assets, a major part of the foreign exchange reserves, rose by $13.99 billion to $557.28 billion in the week under review. Foreign exchange assets mentioned in dollar terms include the impact of fluctuations in non-US currencies such as euro, pound and yen held in the foreign exchange reserves.
According to RBI data, the value of gold reserves fell by $1.05 billion to $74.32 billion in the week under review. SDR increased by $212 million to $18.21 billion. According to the data of the Reserve bank of India, India's reserve with the international Monetary Fund (IMF) increased by $69 million to $4.14 billion in the week under review.
