India's forex reserves soar $11.5B to all-time high of $741B
What's the story
India's foreign exchange reserves have witnessed a massive jump of $11.47 billion, hitting a new record high of $740.8 billion as of August 28. The data was released by the Reserve Bank of India (RBI) on Friday. The latest figure comes after an increase of $12.422 billion in the previous week, taking the total to $729.328 billion by August 21.
Information
RBI's intervention in forex market
The RBI closely monitors the foreign exchange market and intervenes when necessary to maintain orderly market conditions. However, it does not target any specific exchange rate. This strategy is aimed at ensuring the stability of India's currency and preventing excessive volatility in the forex market.
Reserve composition
Foreign currency assets and gold reserves
The RBI's reserve data includes foreign currency assets (FCAs), gold, Special Drawing Rights (SDRs), and India's reserve position with the International Monetary Fund (IMF).
FCAs, which are the largest component of these reserves, rose by $9.34 billion during the week to $600.67 billion.
Gold reserves also contributed to this increase, rising by $2.19 billion to $116.41 billion during the same period.
Reserve decline
SDRs and IMF reserve position
While FCAs and gold reserves saw a rise, India's SDRs fell by $43 million to $18.81 billion.
The country's reserve position with the IMF also witnessed a decline of $11 million, bringing it down to $4.91 billion.
These figures are part of the RBI's overall data on forex reserves and their components, which include assets in currencies like the euro, pound sterling, and yen but are reported in US dollars.
Reserve growth
Increase in forex reserves since March end
Since the end of March 2026, India's forex reserves have increased by $49.70 billion and by $46.57 billion in the last year alone, according to RBI data.
The latest jump comes after a massive $12.4-billion rise in the previous week.
A special deposit program launched by RBI in early June to attract funds from overseas Indians has been a major contributor to this recent accumulation of forex reserves.