India Forex Reserves Hit $728.49 Billion, Rise $4.88 Billion To Record High
· Free Press Journal
New Delhi: India’s foreign exchange reserves increased sharply to a new all-time high of USD 728.49 billion in the week ended February 27, according to data released by the Reserve Bank of India (RBI) on Friday.
Visit asg-reflektory.pl for more information.
The reserves rose by USD 4.885 billion during the week. The previous record level of USD 725.727 billion was reported in mid-February, indicating that the country’s forex buffer continues to strengthen.
Foreign exchange reserves are assets held by the central bank in foreign currencies. These reserves help maintain financial stability and support the country during periods of economic uncertainty.
Yes Bank Reports Fraud Transactions Worth $280K Via Forex Cards in Latin America, Gets RBI SummonsForeign Currency Assets Remain Largest Component
A major portion of the reserves comes from foreign currency assets, which stood at USD 573.125 billion for the week.
These assets include the value of currencies such as the euro, pound, and yen held by the RBI. When these currencies rise or fall against the US dollar, it affects the overall value of India’s foreign currency assets.
Gold Reserves See Strong Increase
The value of gold reserves also increased significantly during the week. The gold component rose by USD 4.141 billion to reach USD 131.63 billion.
Central banks around the world have been increasing their gold holdings in recent years as gold is considered a safe asset during global uncertainty and geopolitical tensions.
According to a Morgan Stanley report, the RBI has added around 75 tonnes of gold since 2024, taking India’s total gold reserves to about 880 tonnes. Gold now makes up roughly 14 percent of India’s total forex reserves, nearly double the share seen in 2021.
Rupee Surges 21 Paise To 90.73 Against Dollar On Falling Crude, Weaker Dollar & Record Forex ReservesOther Components of Forex Reserves
The Special Drawing Rights (SDR) component of India’s reserves stood at USD 18.866 billion, showing a small increase of USD 26 million compared to the previous week.
SDRs are international reserve assets created by the International Monetary Fund (IMF) to supplement member countries’ official reserves.
Strong Reserves Help Stabilise the Rupee
Higher forex reserves give the RBI greater ability to manage the Indian rupee against the US dollar. If the rupee comes under pressure, the central bank can release dollars into the market to control volatility and prevent a sharp fall in the currency.
Rupee Hits Record Low Of 92.18 Against Dollar Amid Surging Oil Prices & Iran CrisisCurrent Account Deficit Widens in Q3FY26
Meanwhile, India’s current account deficit (CAD) stood at USD 13.2 billion, or 1.3 percent of GDP, in the October–December quarter of FY26.
This is slightly higher than USD 11.3 billion, or 1.1 percent of GDP, recorded in the same quarter last year.
The merchandise trade deficit widened to USD 93.6 billion, compared with USD 79.3 billion a year earlier.
However, the deficit was partly offset by strong growth in services exports and remittances.
Net services receipts rose to USD 57.5 billion from USD 51.2 billion last year. At the same time, remittances from Indians working abroad increased to USD 36.9 billion, up from USD 35.1 billion.