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India's Forex Reserves Dip $2.11 Billion After Recent Record High

India's foreign exchange reserves declined by $2.119 billion to $723.608 billion for the week ending February 20, according to the Reserve Bank of India. The drop was driven by decreases in both foreign currency assets and gold reserves. Despite the weekly dip, the overall forex kitty has increased by approximately $56 billion in 2025, following significant growth in recent years. The RBI stated that the external sector remains resilient and reserves are sufficient to cover over 11 months of imports.

Key Points: India's Forex Reserves Drop to $723.6 Billion in Latest Week

  • Reserves dip $2.11bn to $723.6bn
  • Gold reserves down $977 million
  • Foreign currency assets fall $1.039bn
  • Reserves still up ~$56bn in 2025
2 min read

India forex reserves drop by $2.11 billion to $723.608 billion in week that ended Feb 20

India's foreign exchange reserves fell by $2.11 billion to $723.608 billion, driven by declines in gold and foreign currency assets, RBI data shows.

"the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports - RBI"

New Delhi, March 1

India's foreign exchange reserves dipped USD 2.119 billion in the week that ended February 20 to USD 723.608 billion, after having reached a new all-time high recently, according to the Reserve Bank of India's latest data.

Foreign exchange reserves dipped in the latest week, driven by a drop in gold reserves and foreign currency assets.

Over the past few weeks, the forex kitty has been largely in an uptrend. Foreign exchange reserves touch record high of USD 725.727 billion in February.

For the reported week (that ended February 20), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 572.564 billion, down USD 1.039 billion.

The RBI data showed that gold reserves currently stood at USD 127.489 billion, down USD 977 million from the previous week.

After the latest monetary policy review meeting last month, the RBI had said that the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. RBI said India's external sector remains resilient, and it was confident of comfortably meeting the country's external financing requirements.

According to data, the forex kitty has increased by about 56 billion in 2025.

In 2024, reserves rose by just over USD 20 billion.

In 2023, India added around USD 58 billion to its foreign exchange reserves, in contrast to a cumulative decline of USD 71 billion in 2022.

Foreign exchange reserves, or forex reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese yen, and Pound Sterling.

The RBI often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and ideally sells when it weakens.

- ANI

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Reader Comments

P
Priyanka N
The drop in gold reserves is interesting. Maybe the RBI is adjusting the portfolio or there was some valuation change. As long as the external sector remains resilient, as they say, we should be fine. It's a marathon, not a sprint.
A
Aman W
While the headline number is strong, I hope the RBI's intervention strategy to manage the rupee doesn't become too costly in the long run. Sometimes too much management can have unintended consequences. A respectful criticism from an economics student.
S
Sarah B
The comparison with 2022 is stark. From a $71 billion decline to adding over $56 billion so far in 2025 shows remarkable recovery and policy effectiveness. It gives a lot of confidence to foreign investors looking at India.
V
Vikram M
Bhai, $723 billion! Just a few years ago we were celebrating crossing $400 billion. This is a solid safety net for the country. A small weekly fluctuation is just noise. The big picture is very positive for the rupee and our import bill.
K
Kriti O
More than the absolute number, the fact that it covers 11 months of imports is the real story. It means our economy can withstand external shocks much better. Feeling secure about our macro fundamentals. Good job, RBI!

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