India’s Forex Reserves Rise to $654.27 Billion as of March 14
India’s foreign exchange reserves increased by $305 million to reach $654.27 billion for the week ending March 14, 2025, according to official data released by the Reserve Bank of India (RBI). This uptick marks continued momentum in the country’s efforts to maintain a strong economic buffer amid global uncertainties.
Breakdown of Forex Components
The overall rise was supported by gains in several key segments. While foreign currency assets (FCA), the largest component of reserves, declined by $96 million to $557.186 billion due to fluctuations in major global currencies, other components showed positive movement.
Gold reserves rose by $66 million to stand at $74.391 billion, reflecting both a rise in gold prices and robust central bank holdings. Special Drawing Rights (SDRs) with the International Monetary Fund increased by $51 million to reach $18.262 billion. Additionally, India’s reserve position with the IMF rose by $283 million to $4.431 billion.
Recent Trends and Volatility Management
The latest increase follows a dramatic surge in the prior week, when the reserves rose by over $15 billion — the largest weekly gain in more than two years. This significant jump was driven by the RBI’s forex operations, including a major dollar swap to stabilize the rupee during global currency market volatility.
RBI’s Role in Currency Stability
The central bank continues to closely monitor currency markets and actively intervenes to manage sharp fluctuations. By deploying tools such as spot market interventions and forward contracts, the RBI aims to maintain orderly conditions and ensure rupee stability.
Global Standing and Economic Buffer
India’s forex reserves now rank among the world’s largest, providing strong cover for imports and external liabilities. These reserves play a crucial role in strengthening investor confidence and shielding the economy from external shocks, such as commodity price swings or global financial instability.
As India continues to navigate a complex global environment, the RBI’s reserve management strategy remains central to maintaining macroeconomic stability and supporting long-term growth.
