New Delhi: India's foreign exchange reserves increased by $3.5 billion during the week ending August 29, reaching $694.230 billion. This growth was primarily attributed to a rise in foreign currency assets and gold, as reported by the Reserve Bank of India (RBI) in its latest 'Weekly Statistical Supplement'.
The nation's forex reserves are nearing their all-time high of USD 704.89 billion, which was achieved in September 2024.
For the week in question, India's foreign currency assets (FCA), the largest segment of the foreign exchange reserves, amounted to USD 583.937 billion, reflecting an increase of USD 1.7 billion.
According to RBI data, the current gold reserves total USD 86.769 billion, marking an increase of USD 1.8 billion.
Following the recent monetary policy review meeting, RBI Governor Sanjay Malhotra stated that the foreign exchange reserves are adequate to cover 11 months' worth 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 a rise of just over USD 20 billion. Up to this point in 2025, the forex reserves have cumulatively increased by around USD 53 billion, according to the data.
Foreign exchange reserves, or FX reserves, are assets maintained by a nation's central bank or monetary authority, primarily 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, which includes selling dollars to avert significant depreciation of the rupee. The RBI strategically purchases dollars when the Rupee is strong and sells them when it weakens.
