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Key Points

India's foreign exchange reserves decreased by $4.4 billion in the latest week, reaching $690.7 billion. The decline was primarily driven by a $3.65 billion drop in foreign currency assets. Gold reserves also fell by $665 million during the same period. Despite the weekly decline, RBI Governor Sanjay Malhotra confirmed the reserves remain sufficient to cover 11 months of imports.

Key Points: India Forex Reserves Drop $4.4 Billion to $690.7 Billion Says RBI

  • Foreign currency assets dropped $3.65 billion to $582.25 billion
  • Gold reserves declined by $665 million to $85 billion
  • Reserves still cover 11 months of import requirements
  • RBI strategically manages dollar sales to stabilize rupee value
2 min read

India's forex reserves dip $4.4 billion to $690.7 billion in latest week: RBI

RBI reports India's forex reserves fell to $690.7 billion as foreign currency assets and gold reserves both declined in the latest weekly data.

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

New Delhi, August 31

India's foreign exchange reserves (Forex) declined by USD 4.4 billion in the week that ended August 22 to USD 690.720 billion, driven largely by slump in foreign currency assets, the Reserve Bank of India (RBI) said in its latest 'Weekly Statistical Supplement'.

For the reported week, India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 582.251 billion, down by USD 3.652 billion.

The RBI data showed that the gold reserves currently amount to USD 85.003 billion, witnessing a decline of USD 665 million.

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

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 53 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

P
Priya S
The fact that we have enough reserves for 11 months of imports is reassuring. Shows our economy is well-protected against external shocks. Good job RBI!
A
Aman W
While the overall trend is positive, I hope RBI is carefully monitoring these fluctuations. We need stable reserves for a growing economy like ours.
S
Sarah B
The strategic buying and selling of dollars by RBI shows sophisticated monetary management. This is exactly what central banks should be doing to stabilize the currency.
V
Vikram M
From $58 billion addition in 2023 to $53 billion already in 2025 - that's impressive growth! Small weekly declines are part of normal market operations.
N
Nikhil C
The gold reserves decline is interesting. I wonder if this is part of rebalancing or if there are other factors at play. Would appreciate more transparency on this aspect.

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