forex reserves: India’s forex reserves up by $2.98 bn to hit fresh peak of $648.56 bn

India’s foreign exchange reserves stood at an all-time high of $648.56 billion as of April 5, latest data by the Reserve Bank of India (RBI) showed on Friday.The reserves increased by $2.98 billion.

Previously, forex reserves surged by $2.95 billion to $645.6 billion, for the week ended on March 29, 2024.

According to the Weekly Statistical Supplement released by the RBI, Foreign currency assets (FCAs) increased by $549 million to $571.17 billion. Expressed in dollar terms, the FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.

Gold reserves expanded by $2.4 billion to $54.56 billion, whereas SDRs were up by $24 million to $18.17 billion.

Reserve position in the IMF was up by $9 million to $4.67 billion.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

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