Foreign currency assets rose $1.68 billion, standing at $583.9 billion as on August 29
India’s forex reserves rose $3.5 billion on week to $694.2 billion for the week ended August 29, according to data released by the Reserve Bank of India (RBI). In the previous week, forex reserves had fallen $4.4 billion on week to $690.7 billion.
Foreign currency assets (FCA) – which include investment in securities, deposits with other central banks and the BIS, and deposits with commercial banks overseas—rose $1.68 billion, standing at $583.9 billion as on August 29, whereas gold reserves rose $1.76 billion and stood at over $86.77 billion.
Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units such as the euro, pound, and yen held in the foreign exchange reserves.
Special Drawing Rights (SDRs), which refers to India’s commitment to provide resources under the International Monetary Fund’s (IMF) New Arrangements to Borrow (NAB) and investment in SDR denominated Notes issued by IMF, was at $18.7 billion, while the reserve tranche position in IMF stood at $4.7 billion.
The RBI frequently intervenes in the forex market, including selling dollars, to manage liquidity and curb sharp volatility in the rupee. Kunal Sodhani, Head of Treasury at Shinhan Bank, said the RBI at this juncture may not intervene aggressively to maintain export competitiveness against China in the backdrop of tariffs. The central bank doesn’t eye any level but may intervene in case of any excessive volatility.
Published on September 5, 2025
