India’s Forex Reserves Cross $702 Billion Mark with $4.5 Billion Weekly Rise

Mumbai, October 24: India’s foreign exchange reserves climbed by $4.5 billion to reach an all-time high of $702.3 billion for the week ending October 17, according to data released by the Reserve Bank of India (RBI) on Friday. The increase was primarily driven by a sharp jump in the value of the country’s gold reserves, marking a significant milestone in the composition and strength of India’s financial buffers. Gold reserves, which form a vital part of India’s forex holdings, surged by $6.2 billion during the week to exceed $108.5 billion for the first time. This notable rise was attributed to both higher global gold prices and continued accumulation by the central bank. With bullion demand soaring globally amid heightened geopolitical tensions and trade-related uncertainties, gold’s role as a safe-haven asset has once again come to the forefront. However, while gold reserves grew sharply, India’s foreign currency assets — the largest component of the overall reserves — saw a decline of $1.7 billion, falling to $570.4 billion. This movement reflected fluctuations in the value of key international currencies such as the euro, pound, and yen against the U.S. dollar. Additionally, India’s reserve position with the International Monetary Fund (IMF) dipped slightly by $30 million to $4.62 billion over the same period. The data reflects a shifting trend in India’s reserve composition. Over the past decade, the share of gold in the country’s total foreign exchange reserves has nearly doubled — rising from under 7 per cent to close to 15 per cent. Economists point out that this marks the highest proportion of gold in India’s reserves since 1996–97, underscoring the RBI’s strategic diversification of assets amid a volatile global economic climate. Global bullion prices have surged by nearly 65 per cent in 2025, bolstered by growing investor appetite for safe-haven assets. The spike has been driven by ongoing geopolitical tensions in the Middle East, as well as renewed trade frictions stemming from U.S. tariff measures. In this environment, central banks across the world, including India’s RBI, have increased their gold holdings to hedge against market instability and potential currency depreciation. According to a recent Morgan Stanley report, the RBI has added around 75 tonnes of gold to its reserves since 2024, taking the total to approximately 880 tonnes. This now accounts for nearly 14 per cent of India’s total forex reserves, reflecting the central bank’s continued preference for tangible, globally recognized assets amid an uncertain macroeconomic landscape. The steady accumulation of gold, combined with the resilience of India’s foreign currency assets, highlights the RBI’s proactive approach to maintaining external stability. With forex reserves now above the $700 billion threshold, India remains well-positioned to manage external shocks, support the rupee, and meet its import obligations, even in times of global economic turbulence. The latest figures reaffirm India’s growing financial strength and its cautious yet confident approach to navigating the complexities of the global economy. India’s Forex Reserves Hit Record $702 Billion India’s foreign exchange reserves surged by $4.5 billion to reach a record $702.3 billion for the week ending October 17, driven mainly by a sharp rise in gold reserves. The Reserve Bank of India’s gold holdings jumped by $6.2 billion to cross $108.5 billion for the first time, supported by soaring global gold prices. While foreign currency assets dipped slightly, gold’s share in India’s reserves has nearly doubled over the past decade. With the RBI adding around 75 tonnes since 2024, India’s growing gold stock underscores a strategic shift toward stability amid global economic uncertainties.