India's forex reserves inch closer to record high; jumps to $699 billion

ANI June 21, 2025 401 views

India’s forex reserves climbed to $699 billion, just shy of the record $704.89 billion peak. The RBI has nearly doubled its gold holdings since 2021, now worth $86.3 billion. Governor Sanjay Malhotra confirmed reserves can cover 11 months of imports. The central bank actively manages dollar liquidity to stabilize the rupee.

"The forex kitty is sufficient to meet 11 months of imports." – RBI Governor Sanjay Malhotra
New Delhi, June 21: India's foreign exchange reserves (forex) extended their gains, jumping USD 2.294 billion to USD 698.950 billion in the week ending June 13, official data released by the Reserve Bank of India showed.

Key Points

1

India’s forex reserves rise $2.3B to $699B

2

Gold reserves hit $86.3B, nearly double since 2021

3

RBI strategically manages rupee stability via forex interventions

4

Reserves now cover 96% of external debt

At the latest monetary policy meet, RBI Governor Sanjay Malhotra said the foreign exchange kitty was sufficient to meet 11 months of the country's imports and about 96 per cent of external debt.

With this weekly jump, the forex kitty is close to its all-time high of USD 704.89 billion 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 589.426 billion.

According to RBI data, the gold reserves currently amount to USD 86.316 billion.

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

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.

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.

Reader Comments

R
Rajesh K.
This is excellent news! Strong forex reserves mean more stability against global shocks. With China's economy slowing down, our growing reserves give India better negotiating power in international trade. RBI is doing good work managing this strategically 🇮🇳
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Priya M.
While the numbers look impressive, I hope RBI maintains a good balance between dollar and gold reserves. Gold is more stable in long term, especially with US elections coming up which might affect dollar value. More gold = more security for India!
A
Amit S.
Forex reserves crossing $700B soon is great, but can we use some of this to reduce fuel prices? Petrol/diesel costs are pinching common people's pockets. Strong reserves should translate to some relief for citizens also na?
S
Sunita R.
Smart move by RBI to increase gold reserves! In our culture, gold always has value. With tensions near China border and global uncertainties, physical gold is better than paper dollars. More gold = stronger India 💪
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Vikram J.
Good progress, but we must be careful. Pakistan's forex reserves are collapsing while China is sitting on $3 trillion+. We need to keep building reserves to compete with neighbors and handle any future crises like COVID.
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Neha P.
Impressive numbers! But I hope RBI is also focusing on making rupee stronger in international trade. Why can't we do more trade in rupees with friendly countries like Russia, UAE, and Bangladesh? That would reduce dollar dependence in long run.

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India forex reserves RBI Sanjay Malhotra gold reserves rupee stability