India's foreign exchange reserves have declined to $638.698 billion as of the week ending February 28, marking an 11-month low. This drop of $1.781 billion follows a volatile trajectory where reserves have fluctuated between gains and losses over recent weeks.

The decline is largely attributed to the Reserve Bank of India's (RBI) intervention to stabilise the Indian Rupee, which has been near its all-time low against the US dollar.

The reserves have been falling since they peaked at $704.89 billion in September, representing a nearly 10% decrease from their peak.

The foreign currency assets, the largest component of the reserves, stood at $543.350 billion, while gold reserves were valued at $73.272 billion.

Despite the recent decline, estimates suggest that India's foreign exchange reserves remain sufficient to cover approximately 10-11 months of projected imports.

In 2023, India added around $58 billion to its Forex reserves, reversing a $71 billion decline in 2022. In 2024, the reserves grew by just over $20 billion.

The RBI's management of Forex reserves involves strategic buying and selling of dollars to maintain stability in the Rupee's exchange rate.

Agencies