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India's Forex Reserves Drop $6.9 Billion—But Still Near Record $705 Billion

India's foreign exchange reserves dropped by $6.9 billion in the latest reporting week. The decline was driven by decreases in both foreign currency assets and gold holdings. Despite this drop, the reserves remain comfortably near their record high of $704.9 billion. The RBI continues to strategically manage these reserves to support economic stability and cover import needs.

Key Points: India Forex Reserves Drop $6.9 Billion to $695.4 Billion

  • Foreign currency assets dropped by $3.86 billion to $566.55 billion
  • Gold reserves declined by $3.01 billion to $105.54 billion
  • Reserves remain close to all-time high of $704.9 billion reached in September
  • RBI strategically manages dollar sales to prevent rupee depreciation
2 min read

India's forex reserves drop by $6.9 billion, still near record high of $704.9 billion

India's forex reserves fell by $6.9 billion to $695.4 billion, driven by declines in foreign currency assets and gold, yet remain near record highs.

"Foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. - RBI Governor Sanjay Malhotra"

New Delhi, November 2

India's foreign exchange reserves declined by USD 6.925 billion in the week that ended October 24 to USD 695.355 billion, driven by a slump in both foreign currency assets and gold reserves, the Reserve Bank of India's latest 'Weekly Statistical Supplement' data showed.

Still, the country's forex kitty is hovering close to its all-time high of USD 704.89 billion touched in September 2024.

For the reported week, India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 566.548 billion, down USD 3.862 billion.

The RBI data showed that gold reserves currently stand at USD 105.536 billion, down USD 3.010 billion from the previous week. The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.

After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra had said the foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports.

Overall, India's external sector continues to be resilient, and the RBI remains confident of meeting its external obligations comfortably.

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 increased by about USD 46 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 depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.

- ANI

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Reader Comments

R
Rohit P
The gold reserves drop is interesting - gold prices have been rising globally, so maybe RBI is taking some profits? Smart move if that's the case. Our forex management has been quite stable compared to 2022.
S
Sarah B
While the overall picture looks good, I'm concerned about the volatility. We went from adding $58 billion in 2023 to just $20 billion in 2024. Hope this doesn't affect rupee stability in the long run.
A
Arjun K
Strong forex reserves mean our economy can withstand global shocks better. With all the uncertainty in world markets, it's good to know India has this buffer. RBI's intervention strategy seems to be working well for rupee stability.
V
Vikram M
The numbers look impressive on paper, but I wish the RBI would be more transparent about how exactly these reserves are being managed. A small weekly fluctuation is normal, but we need to ensure long-term strategic planning.
K
Kavya N
From $71 billion decline in 2022 to consistent growth since then - that's quite a turnaround! Shows our economic fundamentals are strong. This gives me confidence as someone working in exports business. 💪

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