Daijiworld Media Network - Mumbai
Mumbai, Apr 18: India’s foreign exchange reserves continued their upward streak for a sixth consecutive week, rising by $1.57 billion to reach $677.84 billion in the week ending April 11, according to data released by the Reserve Bank of India (RBI) on Friday.
This latest increase follows a sharp $10.8 billion surge in the previous week, reflecting strengthening confidence in India’s macroeconomic stability. The steady buildup of reserves is seen as a key indicator of robust economic fundamentals and a buffer against global financial volatility.
Within the overall reserve composition, foreign currency assets — the largest component — grew by $892 million to hit $574.98 billion. These assets are expressed in US dollars but account for the value of non-dollar holdings such as the euro, yen, and pound, which are influenced by currency fluctuations.
The RBI also reported a notable rise in gold reserves, which jumped by $638 million to $79.997 billion, as global central banks continue to increase gold holdings amid geopolitical and economic uncertainty, treating it as a safe-haven asset.
Meanwhile, Special Drawing Rights (SDRs) saw a marginal dip of $6 million, bringing the total to $18.356 billion. India’s reserve position with the International Monetary Fund (IMF) edged up by $43 million to $4.502 billion.
This recent strengthening in reserves reverses the earlier trend of decline that had resulted from RBI’s market interventions and currency revaluations. The resurgence comes close on the heels of the record high of $704.885 billion recorded in September 2024.
A healthy forex reserve position enhances the RBI’s capacity to manage the rupee’s stability. By deploying dollars into the market, the central bank can curb excessive volatility in the exchange rate — a critical tool especially in times of global financial stress.
In parallel, India’s merchandise trade deficit has also shown improvement, narrowing to a 3-year low of $14.05 billion in February from $22.99 billion in January. The reduction was driven by stable export performance and a drop in imports, highlighting resilience in the external trade sector even as geopolitical tensions cloud the global economic outlook.