New Delhi [India], November 2 (ANI): India’s foreign exchange reserves declined by USD 6.925 billion in the week ending October 24 to USD 695.355 billion, driven by a slump in both foreign currency assets and gold reserves, according to the Reserve Bank of India’s latest Weekly Statistical Supplement data.
Despite the dip, the country’s forex reserves remain close to the all-time high of USD 704.89 billion reached in September 2024.
For the reported week, India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 566.548 billion, down USD 3.862 billion. The RBI data showed that gold reserves currently stand at USD 105.536 billion, down USD 3.010 billion from the previous week. The price of gold has been on a sharp uptrend in recent months amid heightened global uncertainties and robust investment demand.
After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra said that the foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports.
Overall, India’s external sector continues to show resilience, and the RBI remains confident of meeting its external obligations comfortably. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively increased by about USD 46 billion, the data showed.
Foreign exchange reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the U.S. dollar, with smaller portions in the euro, Japanese yen, and pound sterling. The RBI often intervenes in the foreign exchange market by managing liquidity — selling dollars to prevent steep depreciation of the rupee and buying dollars when the rupee strengthens. (ANI)
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