India’s Forex Reserve: At a time when the Union Budget is to be presented on February 1 and huge fluctuations are being seen in the stock market and the rupee, a big relief news has come to the fore for the country. While this news may make US President Donald Trump, who has imposed high tariffs on India, uncomfortable, it may also increase the concern of countries like China and Pakistan.

In fact, in the week ending January 23, India’s foreign exchange reserves have increased by $ 8.05 billion to reach an all-time high of $ 709.41 billion.

Increase in foreign currency assets

According to the Reserve Bank of India (RBI), last week the country’s total foreign exchange reserves had increased by $ 14.16 billion to $ 701.36 billion. Earlier in September 2024, foreign exchange reserves had reached the level of $ 704.89 billion, although in recent months it was used to control excessive fluctuations in the rupee, due to which pressure was seen on the reserves.

According to RBI data, foreign currency assets (FCA), considered the largest part of foreign exchange reserves, increased by $ 2.36 billion to $ 562.88 billion in the week ending January 23. These assets, denominated in dollars, also include the impact of fluctuations in non-US currencies such as the euro, pound and Japanese yen.

Gold reserves also strong

In the week under review, the value of gold reserves increased by $ 5.63 billion to reach $ 123.08 billion. Apart from this, Special Drawing Rights (SDR) increased by $33 million and stood at $18.73 billion. At the same time, India’s reserve position with the International Monetary Fund (IMF) also increased by $18 million to $4.70 billion.

It is noteworthy that India, which has become the fourth largest economy in the world, is engaged in rapidly strengthening the manufacturing sector under the ‘Make in India’ initiative. Along with this, to reduce the impact of American tariffs, India is also working towards creating new export markets by signing Free Trade Agreements (FTA) with many countries including Britain and European Union (EU).

Market experts believe that to achieve the goal of becoming a ‘developed India’ by 2047, it will be necessary for the country to maintain a continuous GDP growth rate of around eight percent. In such a situation, India will have to take fast and concrete steps for economic reforms, increasing investment and strengthening its share in global trade.

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India’s Forex Reserve: India’s foreign exchange reserves declined by $ 2.33 billion to $ 700.24 billion in the week ended on 26 September. RBI released data in this regard on Friday. A week ago, the country’s total foreign exchange reserves were $ 702.57 billion, which fell with a decrease of $ 39.6 million.

Foreign exchange reserves decline

According to the Reserve Bank data, foreign exchange assets, considered to be the major component of currency reserves, fell by $ 4.39 billion to $ 581.76 billion. These assets also include the effect of price growth or depreciation in non-American currencies such as euros, pounds and yen.

In a recent Monetary Policy Committee (MPC) meeting, RBI Governor Sanjay Malhotra said that by the end of March 2025, India’s foreign exchange reserves are so enough that they can cover the import of 11 months of goods or complete about 95.4 percent of the total outstanding external loans of the country. This reflects the strength and financial stability of India’s foreign exchange status.

Gold reserves increased by $ 2.24 billion to $ 95.02 billion in the week under review, while special drawing rights (SDR) declined by $ 9 million to $ 18.78 billion. Apart from this, India’s reserved reserves in the International Monetary Fund decreased by $ 8,9 million to $ 4.67 billion.

Rupee weakened in interbank foreign exchange market

Due to dollar demand of importers and frequent foreign capital withdrawal, the rupee fell seven paise against dollar in the interbank foreign currency exchange market on Friday at 88.78 (temporary). According to Forex traders, the rupee remains around its all -time low against the dollar due to trade tension and global uncertainties.

In addition, the issue of frequent foreign capital withdrawal and US visa fee increase also put pressure on the domestic currency. In day -to -day trading, the rupee opened at 88.68 against the US dollar and went to a low of 88.85, while finally it fell seven paise to 88.78 (temporary) from the last closed price.

For comparison, the rupee closed at 88.71 against the dollar with a gain of nine paise on Wednesday. Significantly, on September 30, the rupee came to its all -time low of 88.80 against the US dollar. Shares, foreign currency, bullion and commodity markets remained closed on Thursday due to Gandhi Jayanti and Dussehra.

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