INDIA'S FOREIGN EXCHANGE RESERVES DROP $2.1 BILLION TO $723.6 BILLION; GOLD HOLDING EASES

India’s forex reserves dropped by $2.119 billion to $723.608 billion during the week ended February 20, according to the latest RBI data. In the previous reporting week, the overall reserves had jumped by $8.663 billion to a new all-time high of $725.727 billion.

For the week ended February 20, foreign currency assets, a major component of the reserves, decreased by $1.039 billion to $572.564 billion, the data released by the central bank showed.

Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.

Meanwhile, the value of the gold reserves dropped by $977 million to $127.489 billion during the week, the RBI said.

The special drawing rights (SDRs) were down by $84 million to $18.84 billion, the apex bank said. India’s reserve position with the IMF was also down by $18 million to $4.716 billion in the reporting week, according to the apex bank’s data.

According to data, the forex kitty has increased by about 56 billion in 2025. In 2024, reserves rose by just over $20 billion.

In 2023, India added around $58 billion to its foreign exchange reserves, in contrast to a cumulative decline of $71 billion in 2022.

Foreign exchange reserves, or forex reserves, are assets held by a nation’s central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese yen, and Pound Sterling.

The RBI often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and ideally sells when it weakens.

2026-02-28T02:38:58Z