India’s Forex Reserves Climb to $676.3 Billion, Highest in 5 Months

 India’s foreign exchange reserves have surged to $676.3 billion, marking a significant milestone as the highest level recorded in the last five months, according to Reserve Bank of India (RBI) Governor Sanjay Malhotra.

Announcing the central bank’s policy decision on Wednesday, Governor Malhotra noted that the growing reserves now offer an import cover of approximately 11 months, providing India with a strong buffer against external economic shocks and global uncertainties.

Forex reserves climb to $676.3B, highest in 5 months.

Steady Growth Continues

The increase of $10.9 billion during the week ending April 4 represents the largest single-week rise in over a month. This marks the fifth straight week of gains, with the reserves having grown by a total of $26.7 billion over the previous four weeks.

The consistent rise in reserves reflects a combination of robust capital inflows, a narrowing current account deficit, and favorable trade balances, all contributing to the RBI’s strategy to maintain a stable macroeconomic environment.

Strategic Importance

Foreign exchange reserves play a vital role in maintaining currency stability, managing inflation, and supporting the country’s external obligations. The latest increase boosts India’s economic resilience, especially at a time when global markets remain volatile due to geopolitical tensions and trade disruptions.

With this upward trend, India strengthens its ability to withstand financial market fluctuations, keep investor confidence intact, and support long-term economic goals.