India's foreign reserve incrased while on the other hand Pakistan's condition became plundered
India's foreign reserve has increased at the fastest rate in the last two years this week. This week India's foreign reserve has increased by $15.26 billion. On the other hand, Pakistan's foreign exchange reserve has decreased.
The country's foreign exchange reserves rose by $15.26 billion to $653.96 billion during the week ended March 7, the fastest jump in two years.
his information was given by the Reserve Bank of India (RBI). Last week, the country's foreign exchange reserves fell by $1.78 billion to $638.69 billion.
The reserves have been on a declining trend recently due to revaluation as well as intervention in the foreign exchange market by the RBI to help reduce volatility in the rupee. The foreign exchange reserves had reached an all-time high of $704.88 billion at the end of September 2024.
This initiative of RBI showed results
The sharp rise during the week under review is attributed to the $10 billion foreign exchange swap made by the central bank on February 28, when it bought dollars against the rupee to pump liquidity into the system.
According to Reserve Bank data, foreign currency assets, a major component of the foreign exchange reserves, increased by $13.99 billion to $557.28 billion in the week under review.
Foreign currency assets mentioned in dollar terms include the effect of fluctuations in non-US currencies such as euro, pound and yen held in the foreign exchange reserves. However, the value of gold reserves declined by $ 1.05 billion to $ 74.32 billion in the week under review.
Special Drawing Rights (SDR) increased by $212 million to $18.21 billion. According to the data of the Reserve Bank of India, India's reserve with the International Monetary Fund (IMF) increased by $69 million to $4.14 billion during the week under review.
Pakistan is in a bad state
On the other hand, Pakistan's foreign reserve fell to $11.098 billion on March 14, 2025, before this, Pakistan's foreign reserve was $15.2 billion on March 7. If Pakistan's foreign reserve continues to fall like this in the coming days, then it will face many difficulties.
