India’s forex reserves on way to reclaim all-time high of $704.8 billion

New Delhi:  India’s foreign exchange reserves have risen to the highest-level since November last year to $686.14 billion, which shows a resilient economy amid global uncertainties.

According to data from the Reserve Bank of India (RBI), the country’s forex kitty swelled by $8.31 billion for the period ended April 18, over the previous reporting week, which is the seventh consecutive advance.

The reserves had added $1.57 billion in the week ended April 11.

Forex reserves have steadily recovered after a steep fall from their peak of $700 billion at the end of September. The overall forex kitty witnessed an all-time high of $704.885 billion in September 2024.

For the week ended April 18, foreign currency assets — a major component of the reserves — rose to $578.49 billion, according to the RBI data.

The RBI reported that gold reserves saw an increase of $4.575 billion, reaching $84.572 billion during this period. According to the apex bank, Special Drawing Rights (SDRs) increased by $212 million to $18.568 billion.

The data showed that India’s reserve position with the IMF registered an increase of $7 million, reaching $4.51 billion in the reporting week.

India’s financial markets have developed into a dynamic and resilient force to fuel economic growth with an almost doubling of the foreign exchange market from $32 billion in 2020 to $60 billion in 2024 and the average daily volumes in the overnight money markets surging from about Rs 3 lakh crore to over Rs 5.4 lakh in this four-year period, according to RBI Governor Sanjay Malhotra.

There has also been a 40 per cent surge in average daily volumes in the government securities (G-secs) markets to Rs 66,000 crore over the same period.

Malhotra said all the financial market segments of the country, including Forex, G-sec, and Money Markets, have largely remained stable. While the Rupee came under a bit of pressure a few months ago, it has fared better thereafter and regained some lost ground.

—IANS