India Forex Reserve: India’s foreign exchange reserves have declined. According to the latest data of the Reserve Bank of India (RBI), the country’s foreign exchange reserves have declined by $ 6.93 billion to $ 695.36 billion in the week ending October 24. This decline has been recorded due to reduction in both foreign currency assets and gold reserves.
However, despite this decline in a week, the country’s foreign exchange reserves remain close to its all-time high level of $ 704.89 billion recorded in September 2024. These figures point to the Indian economy remaining strong and stable amid global economic uncertainties.
Gold reserve also reduced
The Reserve Bank said that the largest part of foreign exchange reserves i.e. Foreign Currency Assets (FCA) also declined by $ 3.86 billion to $ 566.55 billion. Not only this, the gold reserves have also decreased by $3.01 billion to $105.54 billion. A decline in gold holdings was recorded due to continuous increase in the price of gold at the global level amid geopolitical risks and safe investment demand of investors.
RBI said that in the week under review, the country’s gold reserve declined by $ 3.01 billion to $ 105.536 billion. During this period, Special Drawing Rights (SDR) also declined by $58 million to $18.66 billion. According to the Reserve Bank, India’s reserves with the International Monetary Fund (IMF) increased by $6 million to $4.608 billion in the week under review.
Foreign exchange reserves increased continuously for 2 years
Meanwhile, the good thing is that India’s foreign exchange reserves have increased continuously in the last two years, which reflects the continuous flow of capital and the prudent intervention of the RBI from time to time. After a decline of $71 billion in 2022, reserves increased by approximately $58 billion in 2023. A nominal increase of more than $20 billion was seen in 2024. RBI data shows that so far in 2025, reserves have increased by about $ 46 billion.
The country’s foreign exchange reserves contain many currencies like US dollar, euro, yen and pound sterling. The RBI actively manages these assets, buying dollars when the rupee is strong and selling them when the rupee is weak to stabilize exchange rate fluctuations.
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