India’s foreign exchange reserves rose $ 4.5 billion to $ 658.8 billion
New Delhi:
According to data released by the Reserve Bank of India on Friday, India’s foreign exchange reserves rose $ 4.5 billion to 4 months high of $ 658.8 billion in the week ended on March 28, 2025. According to the RBI, Foreign Currency Assets (FCA) fell $ 1.6 billion to $ 558.86 billion.
The FCA includes the effect of the price increase or depreciation of non-American units like euros, pounds and yens placed in foreign exchange reserves. For this reason, the effect of fluctuations in foreign currencies is seen on the FCA.
Gold Reserve rose $ 2.8 billion to $ 77.2 billion
During the review period, the Gold Reserve rose by $ 2.8 billion to $ 77.2 billion. Earlier in the week ended March 14, the country’s foreign exchange reserves increased by $ 0.305 billion to $ 654.27 billion.
This is the third consecutive week when the country’s foreign exchange reserves have seen an increase. In September 2024, foreign exchange reserves rose to an all -time high of $ 704.885 billion.
Rupee strengthening due to increase in foreign exchange reserves
The increase in the country’s foreign exchange reserves strengthens the rupee, which is also good for the economy. The recent increase in foreign exchange reserves has also strengthened the rupee. The increase in foreign currency reserves shows the strong infrastructure of the economy and this provides enough space to stabilize the RBI in case of instability in the rupee.
Trade deficit reduced to $ 14.05 billion in February
Additionally, according to the latest data from the Ministry of Commerce and Industry, India’s trade trade deficit declined to $ 14.05 billion in February, which was $ 22.99 billion in January.
The country’s trade exports increased by 1.3 percent to $ 36.91 billion in February, compared to $ 36.43 billion in January. At the same time, imports declined by 16.3 percent to $ 50.96 billion, compared to $ 59.42 billion last month.
