India’s foreign exchange reserves saw a decrease of $1.877 billion in the week ending November 28, bringing the total to $686.227 billion, as reported by the Reserve Bank of India (RBI). This decline follows a previous drop of $4.472 billion reported for the week ending November 21, which was attributed to decreases in both foreign currency assets and gold reserves.
In recent weeks, the forex reserves have experienced a continuous downward trend. The RBI’s ‘Weekly Statistical Supplement’ indicates that India’s foreign currency assets (FCA), the primary component of the foreign exchange reserves, fell by $3.569 billion to $557.031 billion. Conversely, gold reserves saw an increase of $1.613 billion, reaching $105.795 billion in the current reporting week, likely due to elevated global uncertainties and strong investment demand for gold as a safe-haven asset.
Additionally, Special Drawing Rights (SDRs) rose by $63 million to $18.628 billion, while the reserve position with the International Monetary Fund (IMF) increased by $16 million to $4.772 billion. Forex reserves, or FX reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller allocations in the Euro, Japanese Yen, and Pound Sterling.
In 2023, India added approximately $58 billion to its foreign exchange reserves, a notable contrast to the cumulative decline of $71 billion experienced in 2022. The reserves exhibited a modest increase of just over $20 billion in 2024. Notably, in 2025 so far, the forex reserves have cumulatively grown by about $48 billion.
The RBI regularly intervenes in the foreign exchange market to manage liquidity, including the sale of dollars to mitigate significant depreciation of the Rupee. This strategy involves purchasing dollars when the Rupee is strong and selling them when it weakens.
Published on December 7, 2025.
