New Delhi: India's foreign exchange reserves increased by USD 4.038 billion in the week ending September 5, reaching USD 698.268 billion, primarily due to a rise in gold reserves, as reported by the Reserve Bank of India (RBI) in its latest 'Weekly Statistical Supplement.'
The nation's foreign exchange (forex) reserves are nearing their peak of USD 704.89 billion, which was achieved in September 2024.
According to RBI data, the current gold reserves total USD 90.299 billion, reflecting an increase of USD 3.530 billion during the reported week.
For the week in question, India's foreign currency assets (FCA), the largest part of the foreign exchange reserves, amounted to USD 584.477 billion, marking an increase of USD 540 million.
Following the recent monetary policy review meeting, RBI Governor Sanjay Malhotra stated that the foreign exchange reserves are adequate to cover 11 months of the country's imports.
In 2023, India added approximately USD 58 billion to its foreign exchange reserves, in contrast to a total decline of USD 71 billion in 2022.
In 2024, the reserves saw an increase of just over USD 20 billion.
As of now in 2025, the forex reserves have grown by about USD 60 billion, according to the data.
Foreign exchange reserves, or FX reserves, are assets maintained by a nation's central bank or monetary authority, mainly in reserve currencies like the US Dollar, with smaller amounts in the Euro, Japanese Yen, and Pound Sterling.
The RBI frequently intervenes by managing liquidity, including the sale of dollars, to avert a significant depreciation of the rupee. The RBI strategically purchases dollars when the Rupee is strong and sells them when it weakens.
