India’s Forex Reserves See Sharpest Jump in Two Years: RBI Data

In a significant development, India’s foreign exchange reserves surged by $15.267 billion to reach $653.966 billion during the week ending March 7, 2025, marking the sharpest rise in over two years. This sudden spike is primarily attributed to the $10 billion forex swap conducted by the Reserve Bank of India (RBI) on February 28, 2025, where the central bank purchased dollars against the rupee to inject liquidity into the system.

Key Highlights of the Report

Forex Reserves Data (March 7, 2025)

  • Total Reserves: $653.966 billion
  • Weekly Increase: $15.267 billion (Sharpest rise in two years)
  • Previous Week’s Reserves: $638.698 billion
  • All-time High: $704.885 billion (September 2024)

Breakdown of Reserve Components

Component Change during the week Current Value
Foreign Currency Assets (FCA) Increased by $13.993 billion $557.282 billion
Gold Reserves Decreased by $1.053 billion $74.325 billion
Special Drawing Rights (SDRs) Increased by $212 million $18.21 billion
Reserve Position with IMF Decreased by $69 million $4.148 billion

Reasons Behind the Surge

  • $10 billion forex swap by RBI on February 28, 2025 to boost liquidity.
  • Reduction in rupee volatility through strategic RBI interventions.
  • Impact of revaluation of foreign assets due to currency fluctuations (dollar, euro, yen, and pound).

Impact on Indian Economy

  • Improved liquidity in the system
  • Strengthened rupee stability
  • Boost in investor confidence
  • Enhanced import cover and external stability
Summary/Static Details
Why in the news? India’s Forex Reserves See Sharpest Jump in Two Years: RBI Data
Total Forex Reserves (March 7, 2025) $653.966 billion
Weekly Increase $15.267 billion
Major Contributor $10 billion forex swap by RBI
Foreign Currency Assets $557.282 billion
Gold Reserves $74.325 billion
SDRs $18.21 billion
Reserve Position with IMF $4.148 billion
All-time High $704.885 billion (September 2024)
Shivam

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