India’s Forex Reserves Climb to $654.27 Billion: ‘Steady Hands in a Volatile World’

RBI’s strategic interventions and strong capital flows help push foreign exchange reserves to a three-month high despite global currency volatility.

MUMBAI, March 22 – India’s foreign exchange reserves rose by $300 million to reach a three-month high of $654.27 billion as of March 14, according to data released by the Reserve Bank of India (RBI) on Friday. This follows a massive $15.3 billion surge in the previous week—the largest weekly jump since August 2021.

“This is a reflection of steady hands in a volatile world,” a senior economist noted, crediting the RBI’s proactive stance in managing the rupee and stabilizing foreign exchange flows.

The incremental rise was led by gains in gold reserves and India’s reserve position at the International Monetary Fund (IMF), while foreign currency assets saw a marginal decline. Volatility in the global currency market—driven by fluctuating U.S. tariff policies and concerns over global trade—has pressured Asian currencies in recent weeks, including the Indian rupee.

During the referenced week, the rupee weakened slightly, dipping 0.1% week-on-week. However, it ended Friday’s session at 85.9725 after hitting a 10-week high of 85.9375, marking a 1.2% gain over the week.

The RBI has remained actively engaged in the forex market, deploying spot dollar sales and executing rupee-dollar buy-sell swaps to contain sharp fluctuations and inject liquidity into the banking system.

Here’s a snapshot of the foreign exchange reserves composition (in million USD) as of March 14, 2025:

• Foreign Currency Assets: $557,186
• Gold Reserves: $74,391
• Special Drawing Rights (SDRs): $18,262
• Reserve Tranche Position (IMF): $4,431
• Total Reserves: $654,271

These reserves are a key financial buffer, offering economic stability and allowing India to navigate external shocks, including global capital flow shifts and inflationary pressures.