India’s foreign exchange reserves decreased by $5.623 billion in the week ending October 31, bringing the total to $689.733 billion. This decline was attributed to a fall in both foreign currency assets and gold reserves, according to data from the Reserve Bank of India (RBI) published in its latest ‘Weekly Statistical Supplement.’
In the past month, the forex reserves have shown a downward trend, aside from one week. However, the reserves remain close to their historical peak of $704.89 billion, achieved in September 2024.
For the week ending October 31, India’s foreign currency assets (FCA), which constitute the largest part of the forex reserves, were reported at $564.591 billion, reflecting a decrease of $1.957 billion. Meanwhile, gold reserves dropped to $101.726 billion, down $3.810 billion from the previous week. The price of gold has been increasing sharply in recent months, likely due to heightened global uncertainties and strong investment demand.
Following the latest monetary policy review, RBI Governor Sanjay Malhotra noted that the foreign exchange reserves are sufficient to cover more than 11 months of merchandise imports. Overall, India’s external sector remains resilient, with the RBI expressing confidence in fulfilling its external obligations.
In 2023, India added approximately $58 billion to its foreign exchange reserves, in contrast to a cumulative decline of $71 billion in 2022. Additionally, in 2024, the reserves increased by slightly more than $20 billion. Year-to-date figures for 2025 indicate that the forex reserves have risen by around $40 billion.
Foreign exchange reserves, or FX reserves, are assets maintained by a nation’s central bank or monetary authority, primarily in reserve currencies like the US dollar, along with smaller allocations in the Euro, Japanese Yen, and Pound Sterling. The RBI actively manages liquidity and intervenes in the currency market by selling dollars to prevent significant depreciation of the rupee. The central bank tends to purchase dollars when the rupee is strong and sell them when it weakens.
Published on November 9, 2025.
