India's foreign exchange reserves rise sharply to $572.801 bn

New Delhi, March 25: India's foreign exchange reserves rose sharply by USD 12.798 billion to USD 572.801 billion in the week ending March 17, the Reserve Bank of India's latest data showed.

India's foreign exchange reserves fell by approximately USD 2.4 billion during the previous week, ending on March 10, to USD 560.003 billion. According to the most recent data from the Reserve Bank of India, India's foreign currency assets, the largest component of its forex reserves, increased by USD 10.485 billion to USD 505.348 billion.

For the latest week, gold reserves increased by USD 2.187 billion to USD 44.109 billion.

The overall forex reserves were over USD 633 billion at the start of the last year 2022. Most of the drop can be ascribed to the RBI's recent intervention as well as an increase in the cost of imported items.

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The country's foreign exchange reserves reached an all-time high of over USD 645 billion in October 2021.

The RBI's intervention in the market to defend the sinking rupee against a surging US dollar had caused the forex reserves to decrease intermittently for months.

Generally, the RBI will interfere in the market from time to time through liquidity management, including the sale of dollars, in order to prevent a sharp depreciation of the rupee.

The RBI regularly monitors foreign exchange markets and intervenes only to ensure orderly market conditions by reducing excessive volatility in the exchange rate, without regard for any predetermined target level or band.

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- ANI