India’s foreign exchange reserves saw a notable increase of $2.703 billion, reaching $698.192 billion for the week ended July 25, 2025, according to data released by the Reserve Bank of India (RBI) on Friday. This surge follows a marginal dip in the previous reporting week and highlights a strengthening of India’s external financial position.
The latest figures indicate a robust buildup across various components of the reserves. Foreign Currency Assets (FCA), the largest component, rose by $1.316 billion to $588.926 billion. FCAs are expressed in dollar terms and account for the appreciation or depreciation of non-US currencies like the euro, pound, and yen held in the reserves.
A significant contributor to the overall increase was also the rise in gold reserves, which grew by $1.206 billion to $85.704 billion during the reporting week. This upward trend in gold holdings reflects a strategic move towards diversifying the reserve portfolio and providing a hedge against global economic uncertainties.
Furthermore, India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) saw an increase of $126 million, reaching $18.809 billion. The country’s reserve position with the IMF also improved by $55 million, settling at $4.753 billion.
The continuous growth in India’s forex reserves provides a crucial buffer against external shocks, helps in managing currency volatility, and instills confidence among international investors regarding the nation’s economic resilience. The RBI frequently intervenes in the foreign exchange market to maintain orderly market conditions and prevent excessive fluctuations in the rupee’s exchange rate.
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