India's forex reserves jump USD 14.14 billion to USD 707 billion
Mumbai, August 14
India's foreign exchange reserves jumped by USD 14.14 billion to USD 707 billion during the week ended August 7, according to data released by the Reserve Bank of India on Friday.
The sharp weekly increase was driven largely by a rise in foreign currency assets and gold reserves, data from the RBI's Bulletin, Weekly Statistical Supplement, highlighted.
Foreign currency assets (FCA), the largest component of the country's forex reserves, increased by USD 9.95 billion during the week to USD 574.63 billion.
Gold reserves also recorded a substantial increase, rising by USD 4.00 billion during the week to USD 108.74 billion.
The country's Special Drawing Rights (SDRs) rose by USD 0.08 billion to USD 18.75 billion, while India's reserve position in the International Monetary Fund increased by USD 0.12 billion to USD 4.89 billion during the week.
The latest data also showed that India's overall foreign exchange reserves were USD 15.89 billion higher compared with the end of March 2026.
Foreign currency assets have increased by USD 22.34 billion since the end of March to USD 574.63 billion. However, the value of the RBI's gold reserves was USD 6.66 billion lower compared with the March-end level, despite the sharp increase during the latest week.
On a year-on-year basis, India's total foreign exchange reserves were USD 13.38 billion higher.
The composition of this annual increase, however, showed a contrasting trend. Foreign currency assets were USD 9.35 billion lower compared with a year earlier, while the value of gold reserves was USD 22.58 billion higher.
The increase in gold reserves therefore more than offset the year-on-year decline in foreign currency assets and helped lift the country's overall forex reserves above their year-ago level.
— ANI
Reader Comments
Interesting to see gold reserves jumping by USD 4 billion in a single week. The RBI seems to be diversifying into gold, which makes sense given global market volatility. Good strategic move!
While this is good news, let's not get too carried away. The year-on-year FCA is actually down by USD 9.35 billion. The gold surge is masking a decline in forex assets. Need to watch out for that.
As someone tracking emerging markets, India's forex reserves are impressive. This kind of buffer helps protect against external shocks like oil price spikes or capital outflows. Good job by the RBI!
The gold reserve increase of USD 22.58 billion year-on-year is significant. Looks like the RBI is betting big on gold as a hedge. Let's hope this translates to rupee stability in the coming months. 🇮🇳
Is this sustainable? The jump seems driven by valuation changes rather than actual inflows. The gold price surge is flattering the numbers. When gold prices correct, we might see these reserves dip again.
Good to see our reserves crossing 700 billion mark. This gives us a cushion against any future economic crisis. Hopefully, the government uses this strength to boost infrastructure and create jobs.