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India's Forex Reserves Dip $6.7 Billion from Record High to $717.1 Billion

India's foreign exchange reserves declined by $6.711 billion to $717.064 billion in the week ending February 6, following a record high the prior week. The drop was primarily driven by a significant $14.208 billion decrease in gold reserves, even as foreign currency assets rose by $7.661 billion. The Reserve Bank of India has stated the reserves are sufficient to cover over 11 months of imports and that the external sector remains resilient. Despite the weekly dip, the overall forex kitty has seen substantial growth in recent years, increasing by about $56 billion in 2025.

Key Points: India Forex Reserves Drop $6.7B from Record High

  • Reserves drop $6.7B from record
  • Gold reserves down $14.2B
  • Foreign currency assets rise $7.66B
  • RBI confident in meeting external financing
2 min read

India forex reserves drop $6.7 billion from record high to $717.1

India's foreign exchange reserves fell to $717.1 billion as gold holdings declined. The RBI states external sector remains resilient.

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

New Delhi, February 15

India's foreign exchange reserves dipped USD 6.711 billion in the week that ended February 6 to USD 717.064 billion, after having reached a new all-time high in the prior week, according to the Reserve Bank of India's latest data.

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

Over the past few weeks, the forex kitty has been largely in an uptrend. Foreign exchange reserves touch record high of USD 723.774 billion last week.

For the reported week (that ended February 6), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 570.053 billion, up USD 7.661 billion.

The RBI data showed that gold reserves currently stood at USD 123.476 billion, down USD 14.208 billion from the previous week.

After the latest monetary policy review meeting earlier this 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
Priya S
The headline drop looks big, but reading the details, our foreign currency assets actually went UP by over $7 billion! The dip is mainly from gold valuation changes. This is just normal fluctuation. Our forex position is very resilient.
R
Rohit P
Gold price must have fallen globally, that's why the reserves value dipped. The actual quantity of gold we hold is the same. Media should explain this better instead of scary headlines. Our economy is on solid ground.
S
Sarah B
While the long-term trend is good, a $6.7 billion weekly drop is significant. It shows how vulnerable we are to global market swings. We need to focus more on boosting exports and reducing our import dependency for long-term stability.
V
Vikram M
From $58 billion added in 2023 to just $20 billion in 2024, and now a weekly drop... we need to watch this closely. Strong forex reserves protect the rupee and control inflation. Hope RBI's active management continues effectively.
M
Michael C
The strategic buying and selling of dollars by RBI to manage the rupee's value is a smart policy. It prevents wild swings that hurt businesses and consumers. This minor correction is part of that healthy management process.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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