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India's Forex Reserves Hit Record $725.7 Billion After $8.66 Billion Weekly Jump

India's foreign exchange reserves soared by $8.663 billion to reach an unprecedented high of $725.727 billion for the week ended February 13. This surge was primarily driven by a significant $4.99 billion increase in gold reserves and a $3.55 billion rise in Foreign Currency Assets. The reserves are a critical buffer for economic health, allowing the central bank to stabilize the rupee's exchange rate during market pressure. Strong remittance inflows and sustained foreign investment continue to support the country's robust external account position.

Key Points: India Forex Reserves Hit All-Time High of $725.7 Billion

  • Reserves hit record $725.727 billion
  • Weekly surge of $8.663 billion
  • Gold reserves up by $4.99 billion
  • Foreign Currency Assets rise to $573.6 billion
2 min read

India's forex surges by $8.663 billion to reach all-time high of $725.727 billion

India's foreign exchange reserves surge by $8.663 billion to a record $725.727 billion, bolstered by gold and foreign currency assets.

"Increasing foreign exchange reserves... strengthens the country's economy - RBI Data Analysis"

Mumbai, Feb 20

India's foreign exchange reserves increased by $8.663 billion to an all-time high of $725.727 billion in the week ended February 13, according to data released by the Reserve Bank of India on Friday.

Foreign exchange reserves had declined by $6.711 billion in the previous week due to a fall in gold prices.

According to RBI data, the value of gold reserves, a key component of foreign exchange reserves, increased by $4.990 billion to $128.466 billion in the week ended February 13.

Foreign Currency Assets (FCA), the largest component of foreign exchange reserves, increased by $3.550 billion to $573.603 billion. FCA includes the dollar, along with several other major global currencies such as the yen, euro, and pound, whose value is expressed in dollars.

According to the RBI, the value of SDRs increased by $103 million to $18.924 billion in the week ended February 13. Meanwhile, India's reserve position with the RBI increased by $19 million to $4.734 billion.

Foreign exchange reserves are crucial for a country and provide a clear indication of its economic health. Furthermore, they play a significant role in maintaining a stable currency exchange rate.

For example, if the rupee is under significant pressure against the dollar and its value declines, the central bank can use its foreign exchange reserves to prevent the rupee from falling against the dollar and maintain a stable exchange rate.

Increasing foreign exchange reserves also indicates a significant inflow of dollars into the country, strengthening the country's economy. Furthermore, this increase also makes it easier for the country to trade abroad.

Notable, the country remains the world's largest recipient of remittances, with inflows reaching $135.4 billion in FY25, supporting stability in the external account, according to the Economic Survey 2025-26. India has consistently attracted sizeable gross investment inflows, amounting to 18.5 per cent of GDP in FY25, even amid tightening global financial conditions.

- IANS

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Reader Comments

S
Sarah B
As someone working in exports, this is very encouraging. A stable rupee and strong reserves make international trade negotiations smoother. Hoping this strength translates into more job creation in the manufacturing sector.
V
Vikram M
Good numbers, but we must be cautious. A large part of the increase is from gold valuation. The real test is sustainable FDI and export growth. The remittance figure of $135 billion is the real hero here – thank you to all our hardworking diaspora!
P
Priyanka N
While this macroeconomic news is positive, I hope this economic strength starts percolating down to the common person. Inflation is still a concern for middle-class families. The reserves should also help in keeping fuel prices in check, please!
R
Rohit P
$725 billion! That's a massive number. It shows global confidence in India's story. The RBI deserves credit for smart management. Now, let's use this buffer to invest heavily in infrastructure and green energy projects.
K
Karthik V
Respectfully, a record high in forex is great, but we must not become complacent. The previous week's decline shows how vulnerable we are to external factors like gold prices. We need to diversify our reserve components further and boost our own production to reduce import bills in the long run.

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

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