India’s foreign exchange reserves rose by USD 3.5 billion to USD 694.23 billion in the week ending August 29, driven by higher foreign currency assets and gold holdings, the Reserve Bank of India (RBI) said in its latest Weekly Statistical Supplement.
The reserves are now inching closer to the all-time high of USD 704.89 billion recorded in September 2024.
According to RBI data, foreign currency assets (FCA)—the largest component of reserves—rose by USD 1.7 billion to USD 583.94 billion. Gold reserves also surged by USD 1.8 billion to USD 86.77 billion.
Following the recent monetary policy review, RBI Governor Sanjay Malhotra noted that India’s forex stockpile was strong enough to cover nearly 11 months of imports.
In 2023, India added about USD 58 billion to its reserves, reversing a sharp fall of USD 71 billion in 2022. During 2024, reserves rose by a little over USD 20 billion, while so far in 2025, they have climbed by around USD 53 billion.
Forex reserves—held by central banks—are typically maintained in reserve currencies such as the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI actively manages the reserves, often intervening in currency markets to stabilize the rupee by buying dollars when it strengthens and selling when it weakens
