India's forex reserves surge $12.8 billion to 6-week high of $572.8 billion

The country's foreign exchange reserves increased by USD 12.798 billion to reach USD 572.801 billion in the week ended March 17, the Reserve Bank of India said on Friday. This was a significant rise compared to the prior week when the reserves had decreased by USD 2.39 billion, dropping to a three-month low of USD 560.003 billion.

In October 2021, the foreign exchange reserves of the country reached a record high of USD 645 billion. However, the reserves have been declining as the central bank deploys the kitty in efforts to support the value of the rupee amidst external pressures primarily caused by global economic developments.

The foreign currency assets' value is calculated in US dollars and considers the changes in value resulting from the appreciation or depreciation of non-US currencies like the euro, pound, and yen, which are held in the foreign exchange reserves.

Additionally, there was an increase in the country's gold reserves by USD 2.187 billion, bringing the total gold reserves to USD 44.109 billion, the RBI said. The Special Drawing Rights (SDRs) also witnessed an increase of USD 98 million, and their total value reached USD 18.219 billion.

Furthermore, the country's reserve position with the International Monetary Fund (IMF) rose by USD 29 million, reaching USD 5.125 billion for the reported week.