India forex reserves fell by $6.9 billion; Remain near record high

According to the RBI, foreign currency assets, the largest component of reserves, fell to $566.548 billion, a decrease of $3.862 billion last week. Gold reserves also declined to $105.536 billion, a decrease of $3.010 billion.

New Delhi: India's foreign exchange reserves declined by $6.925 billion last week. According to the Reserve Bank of India's (RBI) latest Weekly Statistical Supplement, the country's total reserves fell to $695.355 billion in the week ended October 24, 2025. However, this figure remains close to the record high of $704.89 billion recorded in September 2024.

Foreign Currency and Gold Decline

According to the RBI, foreign currency assets, the largest component of reserves, fell to $566.548 billion, a decrease of $3.862 billion last week. Gold reserves also declined to $105.536 billion, a decrease of $3.010 billion. According to experts, this decline is due to global economic uncertainty and increased demand for gold by investors.

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Reserves Decline, But Position Strong

Although reserves have declined, the RBI believes the situation remains strong and stable. RBI Governor Sanjay Malhotra recently stated that India's foreign exchange reserves are sufficient to cover the country's imports for more than 11 months. The Reserve Bank maintains the rupee's value by intervening in the foreign exchange market, which includes strategies such as buying and selling dollars.

Situation Compared to Previous Years

India's foreign exchange reserves have seen significant changes over the past few years. Reserves increased by approximately $58 billion in 2023, while they decreased by $71 billion in 2022. Reserves increased by more than $20 billion in 2024. A total increase of $46 billion has been recorded so far in 2025, indicating that India's foreign exchange position remains strong over the long term.

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Why Are Foreign Exchange Reserves Important?

Foreign exchange reserves are a key indicator of a country's economic stability and global transaction capacity. India's reserves include currencies such as the dollar, euro, yen, and pound sterling. RBI policy maintains currency stability by selling dollars when the rupee weakens and buying dollars when it strengthens. Current data indicates that India's external economy remains well-controlled and strong.

Overall, while foreign exchange reserves declined at the end of October, India's monetary position and economic strength remain clearly stable over the long term.