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Key Points

India's forex reserves dropped sharply by $9.3 billion to $689 billion, marking a weekly decline. Despite this, RBI Governor Sanjay Malhotra assured that reserves remain sufficient for 11 months of imports. Gold reserves also fell by $1.7 billion, reflecting global trends. The overall forex kitty is still close to its all-time high of $704.89 billion.

Key Points: India Forex Reserves Drop $9.3 Billion to $689 Billion

  • Forex reserves decline sharply by $9.3 billion in a week
  • Gold reserves drop by $1.7 billion amid global trends
  • RBI maintains strong import cover of 11 months
  • Forex reserves still near all-time high of $704.89 billion
2 min read

India's forex reserves decline sharply by $9.3 billion to $689 billion

India's forex reserves fell sharply by $9.3 billion to $689 billion, though RBI assures sufficient import cover for 11 months.

"The foreign exchange kitty was sufficient to meet 11 months of the country's imports. – RBI Governor Sanjay Malhotra"

New Delhi, August 10

India's foreign exchange reserves (forex) reported a sharp decline, slipping USD 9.32 billion to USD 688.871 billion in the week ending August 1, official data released by the Reserve Bank of India showed.

At the latest monetary policy meeting, RBI Governor Sanjay Malhotra said the foreign exchange kitty was sufficient to meet 11 months of the country's imports.

Despite this weekly dip, the forex kitty is close to its all-time high of USD 704.89 billion touched in September 2024.

The latest RBI data showed that India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 581.607 billion.

According to RBI data, the gold reserves currently amount to USD 83.998 billion, with a USD 1.706 billion decline.

Central banks worldwide had been increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India was no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021.

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

In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively jumped by about USD 49 billion, data showed.

Foreign exchange reserves, or FX 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 steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.

- ANI

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Reader Comments

S
Shreya B
Why is media making such a big deal about weekly fluctuations? Forex reserves go up and down all the time. Look at the bigger picture - we've added $49 billion this year alone! That's impressive growth despite global headwinds.
A
Aman W
The gold reserves strategy is brilliant! With dollar volatility, having more gold makes sense. Our grandparents always said "sona sada safe hai" (gold is always safe). RBI seems to be following this traditional wisdom with modern economics.
P
Priya S
While the numbers look good, I wish RBI would be more transparent about their intervention strategies. Sometimes the rupee depreciation hits common people hard - petrol prices rise, imports become costly. More communication would help build trust.
V
Varun X
Remember 2013 when we had the taper tantrum crisis? Our forex was below $300 billion then. Look how far we've come! This temporary dip is nothing compared to those dark days. India's economic fundamentals are much stronger now 💪
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Nisha Z
The numbers are good but I'm worried about our trade deficit. Strong forex is useless if imports keep rising and exports don't grow. Make in India needs to succeed for long-term forex stability. We can't just depend on RBI's management forever.

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