India’s forex reserves have increased by $5.97 billion to $578 billion, with $17 billion added in March alone.

According to the most recent RBI data, India’s forex reserves increased for the second week in a row, rising $5.97 billion to $578.778 billion in the week concluded March 24. As a result, the country’s reserves grew by nearly $17 billion in March 2023 alone, as the central bank purchased dollars at lower prices to keep the rupee under control. The fund had increased by $12.8 billion to $572.8 billion in the previous

In October 2021, India’s foreign exchange (forex) hit an all-time high of $645 billion. Since then, the reserves have been steadily declining as the central bank uses the funds to defend the rupee against pressures created primarily by global developments. Reserves dropped sharply by almost 18.5 per cent i.e. around $118 bn from a record high of $642 bn touched in September 2021 to $524.52 bn in October 2022. But, reserves rose from October 2022 to $578.80 billion (till 17th March) as RBI bought dollars on dip to replenish its reserves.

According to the Weekly Statistical Supplement released by the RBI on Friday, for the week ended March 24, the foreign currency assets, a major component of the reserves, increased by $4.38 billion to $509.728 billion.