India’s foreign exchange reserves jump by $6.4 billion to $642.5 billion: RBI

India’s foreign exchange reserves jumped by $6.4 billion to close at $642.49 billion in the week ended March 15, as per the data released by the Reserve Bank of India (RBI) on Friday, March 22.

The amount of forex that has been added to the kitty in the seven-day period is lower as compared to the inflow of $10.47 billion in the preceding week. The country’s overall forex reserves in the week ended March 8 had stood at $636.09 billion.

The current forex reserves, at $642.49 billion, is close to the all-time high of $645 billion clocked in October 2021. Subsequently, the reserves had relatively depleted as the RBI used its kitty to support the value of the rupee in the face of a strengthening dollar and other global macroeconomic developments.

The data released by the central bank showed that the foreign currency assets, a key component of the forex reserves, grew by $6.03 billion to $568.38 billion in the week ended March 15.

The foreign currency assets are measured in dollar terms, and their value is affected by the movement in key non-US currencies – such as the euro, pound and yen – that are part of the country’s forex reserves.

Meanwhile, India’s reserve position with the International Monetary Fund (IMF) dropped by $129 million in the week ended March 15, the RBI data showed. The reserve position stood at $4.68 billion.

The numbers released by the central bank reflected an increase in the special drawing rights (SDRs), which climbed by $65 million to reach $18.27 billion in the reporting week.