Forex Reserves: A huge jump in India's treasury
India's foreign exchange reserves increased by $15.26 billion to $653.96 billion in the week ending March 7, 2025, marking the largest jump in two years. The rise follows a $10 billion forex exchange by the RBI to boost liquidity. However, gold reserves saw a decline, and India's IMF reserves increased slightly.
The reason for this increase in foreign exchange reserves is the foreign exchange exchange of $10 billion done by the central bank on February 28. RBI bought dollars against rupees to increase liquidity in the system. For more business news, visit Vaartha’s Business section.
The country's foreign exchange reserves rose by $15.26 billion to $653.96 billion during the week ended March 7, the biggest jump in two years. The Reserve Bank of India (RBI) gave this information. The country's foreign exchange reserves fell by $1.78 billion to $638.69 billion in the previous week. 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 fluctuations in the rupee. Foreign exchange reserves had reached an all-time high of $704.88 billion at the end of September 2024.
Due to this there was an increase in the treasury
The reason for this increase in foreign exchange reserves is the foreign exchange exchange of $10 billion done by the central bank on February 28. RBI bought dollars against rupees to increase liquidity in the system. According to the data of the Reserve Bank, foreign currency assets, a major part of the foreign exchange reserves, increased by $13.99 billion to $557.28 billion in the week under review. Foreign currency assets mentioned in dollar terms include the effect of fluctuations in non-US currencies like euro, pound, and yen held in the foreign exchange reserves.
Decline in gold reserves
The value of gold reserves fell by $1.05 billion to $74.32 billion during the week under review. Special Drawing Rights (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 during the week under review.
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