India’s foreign exchange reserves rose by USD 4.698 billion in the week ending September 12, reaching USD 702.966 billion, the Reserve Bank of India (RBI) said in its latest Weekly Statistical Supplement. This marks the third consecutive weekly increase and the much-anticipated crossing of the USD 700 billion milestone.
The largest component of the reserves, foreign currency assets (FCA), stood at USD 587.014 billion, up USD 2.537 billion during the week. Gold reserves also saw a significant jump, reaching USD 92.419 billion, an increase of USD 2.12 billion.
Following the latest monetary policy review, RBI Governor Sanjay Malhotra said the forex kitty is sufficient to cover nearly 11 months of India’s imports, reflecting a comfortable external position for the country.
India’s forex reserves have seen substantial growth over recent years. In 2023, the country added about USD 58 billion to its reserves, reversing a cumulative decline of USD 71 billion in 2022. In 2024, reserves increased by slightly over USD 20 billion, and so far in 2025, they have risen by approximately USD 53 billion.
Foreign exchange reserves, held by a country’s central bank or monetary authority, primarily consist of assets in major reserve currencies such as the US Dollar, with smaller allocations in the Euro, Japanese Yen, and British Pound.
The RBI actively manages these reserves to stabilize the rupee, strategically buying dollars when the rupee is strong and selling when it weakens, helping prevent sharp currency depreciation.
