India's forex reserves drop by $2.1 billion: Here's why
India's foreign exchange reserves just dropped by $2.1 billion, landing at $723.6 billion for the week ending February 20, 2026.
This comes right after hitting a record high last week, and the main reasons are changes in foreign currency assets and gold holdings.
Breakdown of the decline
Most of the decline came from a $1 billion fall in foreign currency assets (think euros, pounds, yen) and nearly another billion lost from gold reserves.
Smaller dips in Special Drawing Rights and India's IMF reserve position also played a part.
Why do forex reserves matter?
India has a large forex stash—a big leap from about $29.3 billion.
These reserves help keep the rupee steady, make imports possible, and show economic strength.
It's one of those numbers that quietly keeps things running smoothly behind the scenes.