New Delhi [India], November 16 (ANI): India’s foreign exchange reserves fell by USD 2.699 billion in the week ending November 7, slipping to USD 687.034 billion due to declines in both foreign currency assets and gold reserves, according to the Reserve Bank of India’s latest Weekly Statistical Supplement.
The reserves have been trending downward for most of the past month, with only one week showing an uptick. Despite this decline, the forex kitty remains close to its all-time high of USD 704.89 billion, reached in September 2024.
For the reported week, foreign currency assets (FCA)—the largest component of the reserves—stood at USD 562.137 billion, a drop of USD 2.454 billion. Gold reserves also declined, falling to USD 101.531 billion, down USD 195 million from the previous week. Gold prices have been rising sharply in recent months amid global uncertainty and strong investment demand.
Following its latest monetary policy review, the RBI reiterated that India’s forex reserves are sufficient to cover more than 11 months of merchandise imports. It noted that the country’s external sector remains resilient and that it is well positioned to meet external obligations.
In 2023, India added approximately USD 58 billion to its reserves, reversing the cumulative USD 71 billion decline recorded in 2022. In 2024, reserves rose by a little more than USD 20 billion. So far in 2025, the forex stash has grown by about USD 37–38 billion.
Foreign exchange reserves are assets held by a country’s central bank, predominantly in reserve currencies like the US dollar, along with smaller holdings in the euro, yen, and pound sterling. The RBI frequently intervenes in the currency markets—selling dollars to curb sharp rupee depreciation and buying dollars when the domestic currency strengthens.
Separately, Jefferies noted in its latest GREED & fear report that the Indian rupee may have finally bottomed out after months of weakness. The firm highlighted a “growing likelihood that the rupee has bottomed,” even as it remains the worst-performing major emerging market currency so far in 2025, having depreciated 3.4 per cent to trade near Rs 88.7 per US dollar. (ANI)
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