India’s Forex Reserves Rise for 8th Straight Week, Nearing $690 Billion

India's foreign exchange reserves rose by $1.983 billion to reach $688.129 billion in the week ending April 25, marking the eighth consecutive week of gains, according to data released by the Reserve Bank of India (RBI).

Despite the steady increase, reserves remain below the all-time high of $704.89 billion, recorded in September last year.

The weekly data showed that Foreign Currency Assets (FCAs), the largest component of forex reserves, increased by $2.168 billion to $580.663 billion. FCAs reflect changes in the value of major non-US currencies such as the Euro, Pound Sterling, and Japanese Yen, which are held in dollar terms.

However, India’s gold reserves saw a decline of $207 million, standing at $84.365 billion. Meanwhile, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $21 million, reaching $18.589 billion.

In the previous reporting week ending April 18, the reserves had surged by $8.31 billion to $686.145 billion.

After hitting a record high in September, reserves had dipped due to RBI interventions aimed at cushioning the Rupee from steep depreciation. The Indian Rupee continues to hover near its all-time low against the US dollar.

According to RBI estimates, India’s forex reserves are currently sufficient to cover 10–12 months of projected imports, offering a strong buffer amid global uncertainties.

In 2023, India added $58 billion to its forex reserves, recovering from a $71 billion fall in 2022. So far in 2024, reserves have increased by over $20 billion.
Forex reserves are vital assets held by the RBI, largely in reserve currencies like the US Dollar, and help the central bank manage liquidity, stabilize the Rupee, and maintain confidence in monetary and exchange rate policies.

Also Read: India’s Forex Reserves Climb to $677.84 Billion, Sixth Weekly Gain: RBI