India's Forex Reserves See Remarkable Surge

India's forex reserves surged by USD 6.596 billion, reaching USD 665.396 billion as of March 28. The increase, marking the fourth consecutive week of growth, is attributed to forex market interventions and shifts in foreign currency assets and gold reserves, though IMF positions saw a slight decline.

The Reserve Bank of India has announced a significant uptick in the country's foreign exchange reserves, with an increase of USD 6.596 billion, thus reaching a total of USD 665.396 billion as of March 28. This marks the fourth consecutive week where India's forex reserves have risen, reversing a recent declining trend attributed to both market interventions and revaluation efforts.

Key components of this increase include a substantial rise in foreign currency assets, which went up by USD 6.158 billion to USD 565.014 billion. This rise incorporates fluctuations in the value of non-US currencies like the euro, pound, and yen, which are part of the forex reserves. Notably, gold reserves also contributed to this growth, increasing by USD 519 million to reach USD 77.793 billion.

In contrast, the report showed a decrease in Special Drawing Rights (SDRs) by USD 65 million to USD 18.176 billion, and India's position with the International Monetary Fund saw a reduction of USD 16 million, standing at USD 4.413 billion. Overall, the latest data suggests a strong recovery in India's forex reserves as the country maneuvers through global economic uncertainties.

(With inputs from agencies.)