India’s Forex Reserves Rise by $7.6 Billion to $638 Billion

India’s foreign exchange reserves saw a significant rise of $7.6 billion, reaching $638 billion as of February 7, 2025, according to data released by the Reserve Bank of India (RBI) on Friday.

Gold reserves also witnessed an increase of $1.3 billion, standing at $72.20 billion, while foreign currency assets (FCA) surged by $6.4 billion to settle at $544.11 billion.

However, the Weekly Statistical Supplement released by the RBI showed a decline in Special Drawing Rights (SDRs) by $11 million, bringing them down to $17.87 billion. The Reserve Bank's position in the International Monetary Fund (IMF) also dropped by $71 million to $4 billion.

This marks the third consecutive week of growth in forex reserves, following a $1.05 billion increase last week. Notably, India’s forex reserves had peaked at an all-time high of $704.885 billion in late September before experiencing a downward trend due to revaluation and the RBI’s interventions to stabilize the rupee.

In a related development, the RBI announced a 25-basis-point cut in the repo rate, bringing it down to 6.25% at the latest Monetary Policy Committee meeting. This marks the first rate cut in five years.

The RBI releases India’s forex reserve data every Friday, closely monitoring it as a key economic indicator. The central bank intervenes in the forex market when necessary to curb excessive volatility in the rupee’s exchange rate, without adhering to a specific target level.

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