India’s foreign exchange (forex) reserves soared by $5.03 billion to $303.67 billion for the week ended March 28, Reserve Bank of India (RBI) data showed.
The forex reserves have soared past $300 billion mark for the first time since December 2011.
This is the fifth consecutive week of increase in the country’s forex reserves as overseas investors poured in money in local bonds and stock markets. The forex reserves had risen by $1.34 billion and $1.83 billion in the previous two weeks.
The government’s stake sale in Axis Bank, a large part of which was bought by foreign funds, is among the major reasons for such a sharp jump in the forex reserves kitty. The government divested 9 percent of its stake in Axis Bank during the week under review.
According to the RBI’s weekly statistical supplement, foreign currency assets, the biggest component of the forex reserves, rose by $5.01 billion to $276.40 billion.
Foreign currency assets, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies held in reserve such as the Pound sterling, Euro and Yen.
India’s reserve position with the International Monetary Fund (IMF) rose by $30 million to $1.83 billion.
However, the value of special drawing rights (SDRs) fell by $3.6 million to $4.45 billion, while the value of gold reserves remained unchanged at $20.97 billion.