India’s Forex Reserves Surge, Eyeing Record High

India’s foreign exchange reserves have climbed for the seventh consecutive week, reaching USD 686.145 billion as of April 18. The latest data from the Reserve Bank of India indicates an increase of USD 8.31 billion, marking a steady recovery after months of decline.  

The reserves had previously dipped following their all-time high of USD 704.89 billion in September 2024, largely due to RBI interventions aimed at stabilizing the rupee. The central bank strategically buys dollars when the rupee strengthens and sells them when it weakens to prevent excessive volatility.  

Foreign currency assets, which form the largest component of forex reserves, now stand at USD 578.49 billion. Gold reserves have also seen a notable rise, reaching USD 84.572 billion. Analysts estimate that India’s current forex reserves provide an import cover of approximately 10 to 12 months, reinforcing economic stability amid global financial fluctuations.  

The steady increase in reserves reflects India’s strong external position, with the country adding nearly USD 58 billion to its forex reserves in 2023. This trend has continued into 2024, with reserves rising by over USD 20 billion so far.  

Sources: MSN News, NewsX, India TV News, Times of India, ThePrint, Tribune India