New Delhi: India’s foreign exchange reserves continued their upward trajectory, rising by USD 1.567 billion to reach USD 677.835 billion in the week ending 4 April, according to data released by the Reserve Bank of India (RBI). This marks the sixth consecutive week of gains.

For the subsequent week ending 11 April, foreign currency assets — the largest component of the reserves — increased by USD 892 million, bringing the total to USD 574.98 billion.

Gold reserves also saw a notable rise, surging by USD 638 million to reach USD 79.997 billion, the data showed.

However, there was a minor dip in Special Drawing Rights (SDRs), which declined by USD 6 million to settle at USD 18.356 billion.

The RBI estimates that India’s current forex reserves are sufficient to cover around 10–11 months of projected imports, offering a strong buffer against external shocks.

India’s foreign exchange market has shown significant growth in recent years. The average daily turnover has nearly doubled — from USD 32 billion in 2020 to USD 60 billion in 2024 — underscoring increased activity and confidence in the financial system.

In 2023, India added approximately USD 58 billion to its reserves, a sharp contrast to the USD 71 billion drop seen in 2022. So far in 2024, the reserves have grown by just over USD 20 billion.

Foreign exchange reserves are held by a country's central bank primarily in major global currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI actively manages these reserves, buying dollars when the rupee strengthens and selling them during periods of depreciation, in order to maintain financial stability and manage liquidity.