India’s forex records rise for fifth consecutive week

The forex reserves have surged to $642.63 billion

The forex reserves reached an all-time high in 2021 / Canva

India’s foreign exchange reserves continued their upward trajectory, with a fifth consecutive week of growth as of March 22, 2024.

The Reserve Bank of India (RBI) released the latest figure on March 29, with foreign exchange surging to $642.63 billion, seeign an addition of $140 million in the reporting week.

However, the Foreign Currency Assets (FCA) saw a decline in its numbers. The Weekly Statistical Supplement, issued by the RBI, revealed that the FCAs faced a marginal decline of $123 million, resulting in $568.26 billion.

FCAs represent the amount of money a country holds in foreign currencies.  Their values get adjusted in dollars to better gauge fluctuations in exchange rates.

Gold reserves, on the other hand, saw an increase of $347 million. It climbed to $51.49 billion during the same period. Special Drawing Rights (SDRs) witnessed a dip, decreasing by $57 million to $18.22 billion. SDRs are an international monetary reserve created by the International Monetary Fund (IMF).

SDRs are a kind of “currency” used among IMF member countries to supplement a country’s own reserves and provide liquidity. IMF member countries can use this reserve to address the Balance of Payments imbalance and financial instability.