Record Surge in India's Forex Reserves: What it Means

India's foreign exchange reserves soared by USD 15.267 billion to reach USD 653.966 billion, marking the biggest increase in over two years. This upturn follows a previous decline and is attributed to a USD 10 billion forex swap by the RBI, bolstering foreign currency and gold reserves.

India's foreign exchange reserves have experienced a significant surge, climbing by USD 15.267 billion to a total of USD 653.966 billion, according to recent data from the Reserve Bank of India (RBI).

This marks the most substantial increase in over two years and comes after a drop of USD 1.781 billion the previous week. The uptick is largely due to a USD 10 billion forex swap carried out by the RBI on February 28, intended to inject liquidity into the system by purchasing dollars in exchange for rupees.

Alongside the increase, the foreign currency assets expanded by USD 13.993 billion to reach USD 557.282 billion. Gold reserves also rose by USD 1.053 billion to USD 74.325 billion, while the Special Drawing Rights added USD 212 million, now totaling USD 18.21 billion. However, India's reserve position with the IMF saw a slight decline, dropping by USD 69 million to USD 4.148 billion.

(With inputs from agencies.)