India's Forex Reserves Experience a Significant Surge

India's foreign exchange reserves have seen their most substantial weekly increase in over three years, thanks to the Reserve Bank of India's (RBI) strategic currency swap operations last month. In the week leading up to March 7, the reserves escalated by an impressive $15.3 billion, reaching nearly $654 billion. This marks the largest weekly gain since August 27, 2021, as per Bloomberg data.

RBI's Strategic Move to Alleviate Cash Crunch

This remarkable growth in India's dollar stockpile was significantly bolstered by the RBI's injection of $10 billion through a foreign-exchange swap auction on February 28. This move was part of the central bank's intensified efforts to mitigate the cash crunch within the financial system, showcasing a proactive approach to maintaining economic stability.