India’s foreign exchange reserves fell by USD 4.4 billion in the week ending August 22, reaching USD 690.720 billion, largely due to a decline in foreign currency assets, according to the Reserve Bank of India’s (RBI) latest Weekly Statistical Supplement.
During the week, India’s foreign currency assets (FCA), the largest component of the reserves, dropped by USD 3.652 billion to USD 582.251 billion. Gold reserves also declined by USD 665 million, standing at USD 85.003 billion.
Following the RBI’s latest monetary policy review, Governor Sanjay Malhotra noted that the country’s foreign exchange reserves are sufficient to cover 11 months of imports.
India’s forex reserves have seen substantial growth over recent years. In 2023, reserves increased by around USD 58 billion, contrasting with a decline of USD 71 billion in 2022. In 2024, reserves rose by just over USD 20 billion, and in 2025, the kitty has cumulatively grown by approximately USD 53 billion so far.
Foreign exchange reserves are assets held by a nation’s central bank, mainly in reserve currencies such as the US Dollar, with smaller amounts in the Euro, Japanese Yen, and Pound Sterling. The RBI actively manages these reserves to stabilize the Rupee, buying dollars when the currency is strong and selling when it weakens.
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