Gold makes up 12.5% of India's forex reserves
India's foreign exchange reserves slipped to $700.24 billion on September 26, down slightly from $702.9 billion a couple of weeks earlier, says the Reserve Bank of India (RBI).
This small drop may be due to regular market ups and downs, plus shifts in currency values.
Gold now makes up about 12.5% of the reserves—roughly $90 billion.
What are forex reserves?
Most of India's forex stash is made up of foreign currencies, with reserves composed of assets like foreign currencies, gold, special drawing rights, and India's reserve position with the IMF.
The RBI steps in when needed—not to fix the rupee at one price, but to keep things steady if global markets get bumpy.
Reserves hit all-time high last month
These reserves are basically a safety net for India's economy—they help protect against global shocks and keep confidence high in how money is managed here.
Just last month (mid-September 2024), they hit an all-time record before this dip, showing solid growth overall.
With GDP expected to grow by 6.8% for 2025-26, the RBI seems cautiously optimistic about where things are headed.