New Delhi, Mar 2 (KNN) India's foreign exchange reserves have surged to USD 619.072 billion, marking a notable increase of USD 2.975 billion, as revealed by the latest data from the Reserve Bank of India (RBI).

The data, released through the Weekly Statistical Supplement by the RBI, indicates a significant growth in India's foreign currency assets (FCA) by USD 2.405 billion, reaching a total of USD 548.188 billion during the same period.

However, amidst this overall increase, there's been a decline in gold reserves, which decreased by USD 472 million to reach USD 47.848 billion.

Notably, this recent surge in foreign exchange reserves comes after a decline in the previous week when reserves dropped by USD 5.240 billion to USD 617.230 billion.

Reflecting on the broader trends, in the calendar year 2023, the RBI added approximately USD 58 billion to its foreign exchange reserves, indicating a robust accumulation strategy.

This stands in contrast to the preceding year, 2022, when India experienced a cumulative decline of USD 71 billion in forex reserves.

India's foreign exchange reserves had reached an all-time high of around USD 645 billion in October 2021. While there has been a marginal decline since then, factors such as increased import costs in 2022 and RBI interventions to counteract rupee depreciation against the US dollar have influenced these fluctuations.

The RBI monitors foreign exchange markets closely and intervenes when necessary to maintain stability and prevent excessive volatility in the exchange rate. Such interventions by the bank aim to ensure orderly market conditions without a predefined target level or band for the exchange rate.

The RBI remains vigilant in monitoring foreign exchange markets, intervening as necessary to maintain stability and prevent excessive volatility in exchange rates.

(KNN Bureau)