India's foreign exchange reserves rose at the fastest pace since November last year.
Foreign exchange reserves rose by $12.8 billion to $572.8 billion for the week ended March 17, 2023, according to the Reserve Bank of India's weekly statistical supplement released on Friday.
The RBI has been building up foreign exchange reserves since November 2022, according to a note published by SBI Research in February.
Total reserves have increased at a significantly faster rate since November last year, in contrast to the period after the 2008 crisis, when reserve build-up was gradual and the exchange rate was allowed to appreciate by 10% against a 24% fall, the note said.
Currently, exchange rate depreciation has been only 9%, allowing RBI the operational flexibility to build up reserves as a primary option, it said.
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