New Delhi [India], October 26 (ANI): India’s foreign exchange reserves rose by USD 4.5 billion in the week ending October 17 to USD 702.28 billion, driven primarily by a surge in gold reserves, according to the Reserve Bank of India’s (RBI) latest Weekly Statistical Supplement.
The country’s forex reserves are now hovering close to their all-time high of USD 704.89 billion, recorded in September 2024.
For the reported week, India’s foreign currency assets (FCA) — the largest component of foreign exchange reserves — stood at USD 570.41 billion, down USD 1.69 billion.
RBI data showed that gold reserves currently stand at USD 108.55 billion, up USD 6.18 billion from the previous week. The price of the safe-haven asset has seen a sharp uptrend in recent months amid rising global uncertainties.
After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra said the foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. He added that India’s external sector continues to remain resilient, and the RBI is confident in meeting its external obligations comfortably.
In 2023, India added around USD 58 billion to its foreign exchange reserves, a strong contrast to the cumulative decline of USD 71 billion in 2022. In 2024, reserves increased by a little over USD 20 billion, and so far in 2025, the forex kitty has grown by about USD 53 billion, according to official data.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in major reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.
The RBI often intervenes in the forex market to manage liquidity — buying dollars when the rupee is strong and selling them when it weakens — to prevent sharp fluctuations in the currency’s value. (ANI)
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