India’s forex reserves jumped by $3.293 billion to $696.61 billion in the week. According to the Reserve Bank of India, the overall kitty had increased by $4.368 billion to $693.318 billion in the previous reporting week.
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.
Segment-wise growth
For the week ended December 26, foreign currency assets, a major component of the reserves, increased by $184 million to $559.612 billion, according to the central bank’s data.
Value of the gold reserves jumped by $2.956 billion to $113.32 billion during the period. In the preceding week, the value of the gold reserves increased by $2.623 billion to $110.365 billion.
India’s Special Drawing Rights (SDRs) increased by $60 million to $18.803 billion during the week. In the previous week, India’s SDRs were up by $8 million to $18.744 billion
Furthermore, India’s reserve position with the IMF increased by $93 million to $4.875 billion in the reporting week, according to RBI data. In the last week, India’s reserve position with the IMF was alsoup by $95 million to $4.782 billion.
Forex and rupee depreciation in 2025
One of the biggest challenges for the RBI in 2025 was the rupee breaching the 90-to-a-dollar mark. The central bank, which maintains that market interventions are guided by the aim of reducing volatility and not defending a level, sold over $38 billion of foreign exchange in the first nine months of the year as the domestic currency depreciated against the US dollar.
RBI Governor Sanjay Malhotra also highlighted the over $690 billion in forex reserves and a manageable current account deficit as key strengths going forward. However, given the sharp movements in the currency lately, experts opine that the rupee will continue to be a more challenging aspect for the central bank.
