India’s Forex Reserves Cross $702 Billion with $4.7 Billion Weekly Rise

India’s foreign exchange reserves continued their upward trajectory, climbing by $4.698 billion to $702.966 billion for the week ended September 12, 2025, according to data released by the Reserve Bank of India (RBI) on Friday. This marks the third consecutive weekly increase, pushing reserves firmly past the $700 billion mark.

Consecutive Weekly Gains

In the previous week, overall reserves had risen by $4.038 billion to $698.268 billion, while a week earlier, they had gained $3.51 billion to $694.23 billion. The steady buildup reflects sustained capital inflows, favourable valuation effects, and robust external sector dynamics.

Component-Wise Breakdown

The RBI data showed that:

• Foreign currency assets (FCA), the largest component of reserves, increased by $2.537 billion to $587.014 billion. FCA values also capture the impact of changes in non-U.S. currencies such as the euro, pound, and yen against the dollar.
• Gold reserves jumped $2.12 billion, taking their total value to $92.419 billion.
• Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $32 million to $18.773 billion.
• India’s reserve position with the IMF also improved by $9 million, reaching $4.76 billion.

Significance of Rising Reserves

Crossing the $700 billion threshold strengthens India’s buffer against external shocks, helps stabilise the rupee, and provides policy space in times of global financial volatility. The rise in gold reserves alongside foreign currency assets highlights a diversified reserve portfolio, offering both liquidity and stability.

Read More: Equity Fund Inflows Rise 15% Annually, Sectoral and Flexi Cap Funds Lead the Surge 

Conclusion

With three consecutive weeks of strong gains, India’s forex reserves now stand at $702.966 billion, their highest level in recent months. The consistent buildup reflects the resilience of India’s external sector and enhances confidence in the country’s financial stability amid global uncertainties.

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