India’s foreign exchange reserves increased by USD 4.038 billion during the week ending September 5, reaching a total of $698.268 billion, primarily driven by a rise in gold reserves, according to the latest ‘Weekly Statistical Supplement’ from the Reserve Bank of India (RBI).
The nation’s forex reserves are nearing their all-time high of $704.89 billion, which was achieved in September 2024. RBI data indicates that the gold reserves now total $90.299 billion, reflecting a rise of $3.530 billion in the reported week.
For the week in question, India’s foreign currency assets (FCA), which form the largest part of the foreign exchange reserves, stood at $584.477 billion, marking an increase of $540 million. Following the latest review of monetary policy, RBI Governor Sanjay Malhotra mentioned that the foreign exchange reserves are adequate to cover 11 months of the country’s imports.
In the year 2023, India added approximately $58 billion to its foreign exchange reserves, in contrast to a cumulative drop of $71 billion in 2022. By 2024, the reserves had risen by just over $20 billion. So far in 2025, the forex reserves have grown by around $60 billion, based on the reported data.
Foreign exchange reserves, commonly referred to as FX reserves, consist of assets held by a nation’s central bank or monetary authority, predominantly in reserve currencies such as the US Dollar, with smaller amounts in the Euro, Japanese Yen, and Pound Sterling.
The RBI typically intervenes by managing liquidity, which includes currency sales, to prevent a sharp depreciation of the rupee. The RBI strategically purchases dollars when the Rupee is strong and sells them when it weakens.
Published on September 14, 2025
