India’s forex reserves soar; exceeds $672 billion | Gold reserves a major driver | Biz News

The latest RBI data reveal India’s foreign exchange reserves increased by $963 million to $672.587 billion in the week ending June 19, 2026. Gold reserves also jumped during the week, while foreign currency assets declined. India’s reserve positions with SDRs and the IMF also declined slightly.

Gold reserves were the biggest driver of the increase in foreign exchange reserves this week. (Picture Credit: PTI)

Kolkata: Foreign reserves in any economy is an important indicator of financial health. According to the latest data of RBI, the country’s foreign exchange reserves rose by $963 million to $672.587 billion in the week ending June 19, 2026. The previous week, a significant decline of approximately $9.985 billion was recorded in foreign exchange reserves, but now the reserves have risen again. Foreign exchange reserves are always considered a key indicator of a country’s economic strength. Therefore, this increase in reserves is being considered a positive sign for the Indian economy.

Decline in foreign currency

Despite the rise in total foreign exchange reserves, the largest component of foreign exchange reserves under the head of foreign exchange reserves, actually declined. According to the RBI, foreign exchange reserves declined by $3.072 billion to $541.217 billion during the reporting week. Fluctuations in other major foreign currencies, such as the euro, pound, and yen, against the dollar also impact the valuation of foreign currency assets. Therefore, changes in foreign exchange reserves are not solely dependent on dollar purchases and sales.

Gold reserves to the rescue

Gold reserves were the biggest driver of the increase in foreign exchange reserves this week. RBI data revealed, the country’s gold reserves increased by $4.110 billion to $107.930 billion during the week reported. After a brief lull, central banks worldwide have been increasing gold purchases in recent months after prices began correcting. Gold’s importance has steadily increased amid global uncertainties, geopolitical tensions, and growing demand for safe-haven investments. India is also strengthening gold holdings in its reserve strategy.

Slight decline in SDR

According to the report, India’s SDR also registered a slight decline. The SDR fell by $52 million to $18.647 billion in the reporting week. Incidentally, SDR is an international reserve asset made available to member countries by the International Monetary Fund and used to increase the availability of foreign exchange when needed. therefore, t is also incorporated in the forex reserves.

According to RBI data, India’s reserve position with the International Monetary Fund (IMF) also declined, falling by $22 million to $4.793 billion during the reporting week. However, this decline was limited and did not significantly impact the country’s overall foreign exchange reserves.

Avijit Ghosal

Avijit Ghosal has been writing on topics of business, industry and investment for the past three decades. He also writes on the broad economy, infrastructure and issues in banking. He has worked for economic dailies such as the Business Standard, The Economic Times, business magazines such as Business Today, English broadsheet the Hindustan Times and Bengali daily Anandabazar Patrika before joining TV9 Network.

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