India's Forex Reserves Surge: A $15.3 Billion Leap!
India's foreign exchange reserves rose by $15.3 billion, reaching $653.96 billion for the week ending March 7, 2025.
This marks the largest weekly increase since August 2021, driven by the Reserve Bank of India's (RBI) recent currency swap operations.
The RBI executed a $10 billion dollar-rupee swap on February 28, aimed at enhancing liquidity in the banking system.
The surge also reflects valuation gains from a weaker dollar index, which dropped to a four-and-a-half-month low.
Foreign currency assets contributed significantly, increasing by $13.9 billion to $557.8 billion, while gold reserves rose by $1 billion to $74.3 billion.
The RBI actively manages forex reserves to stabilize the rupee and mitigate excessive market volatility.
Economists view this increase as a positive sign for India's economic stability amid global uncertainties.
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