India's Forex Reserves Experience a Significant Boost

In a remarkable turnaround, India's foreign exchange reserves have seen their most substantial weekly increase in over three years, surging by $15.27 billion to reach $653.97 billion in the week ending 7 March, according to the latest data from the Reserve Bank of India (RBI). This surge marks a strong recovery after months of volatility, with the reserves previously hitting an 11-month low before experiencing fluctuations.

Despite the recent ups and downs, India's reserves remain robust, estimated to cover around 10-11 months of projected imports. The RBI's active management of forex reserves, including buying dollars when the Rupee strengthens and selling them when it weakens, plays a crucial role in safeguarding economic stability and managing exchange rate fluctuations.