India's forex reserves see ₹54k crore boost; jump to $625 billion in March 2024

India's forex reserve has jumped by $6.55 billion to $625 billion in the week ending on March 1, announced RBI.

India witnessed a boost of over ₹54,000 crore in forex reserves for the week ending on March 1, announced the Reserve Bank of India on Friday. The forex reserves of the country jumped by $6.55 billion (over ₹54,170 crore) to $625 billion, RBI said.

India sees major boost in forex reserves

This marks a significant bump from last week's forex reserve boost, showed RBI's data. In the previous reporting week, the overall reserves had risen by $2.975 billion to $619.072 billion.

It can be noted that in October 2021, the country's forex kitty had reached an all-time high of $645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year.

For the week ended March 1, the foreign currency assets, a major component of the reserves, increased by $6.043 billion to $554.231 billion, the data said.

Expressed in dollar terms, the foreign currency assets 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 increased by $569 million to $48.417 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were down by $17 million to $18.18 billion, the apex bank said. India's reserve position with the IMF was also down by $41 million to $4.798 billion in the reporting week, the apex bank data showed.

The ongoing surge in the country's forex reserves indicate the strengthening of the Indian economy on a global front, showcasing stability. The Indian economy continues to climb as many Western countries grapple with recession. In the last quarter, the Indian GDP showcased a growth of 8.4 percent, surpassing all predictions.

(With inputs from PTI)