India’s foreign exchange reserves have soared by $2.98 billion, reaching a new record of $648.562 billion for the week ending 5 April, according to the latest figures released by the Reserve Bank of India (RBI).

This increase marks the seventh consecutive week of gains in the country’s forex reserves.

Previously, during the week ended 29 March, the forex reserves had risen by $2.951 billion to $645.583 billion, surpassing the previous all-time high of $642.453 billion set in September 2021.

After a period of decline due to the central bank’s efforts to stabilise the rupee against global economic pressures, the reserves have seen a consistent upward trajectory in recent months.

The rise in reserves for the week can be attributed primarily to increases in foreign currency assets (FCAs), which grew by $549 million to $571.166 billion.

FCAs, which are a major component of the total reserves, are influenced by the RBI’s interventions in the forex market to control volatility, as well as by fluctuations in the value of other currencies against the dollar, including the euro, pound, and yen.

Additionally, the RBI reported significant gains in gold reserves, which surged by $2.398 billion to $54.558 billion.

The Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) also saw an increase, rising by $24 million to $18.17 billion.

India’s reserve position in the IMF experienced a modest rise of $9 million, reaching $4.669 billion.

These developments come at a time when the RBI has been actively managing the foreign exchange market to mitigate excessive fluctuations in the rupee’s value, amidst ongoing global financial challenges.

The steady increase in reserves is seen as a robust buffer that can help India manage external and internal financial shocks more effectively.

Also Read: Terrorists Don’t Play By Rules, Response To Terrorism Can’t Be By Rules: S Jaishankar