India’s Forex Reserves Fall By $2.119 Billion To $723.608 Billion

India’s foreign exchange reserves fell by $2.119 billion to $723.608 billion for the week ended February 20, 2026, according to data released by the Reserve Bank of India. The decline comes a week after the reserves had surged by $8.663 billion to touch a record high of $725.727 billion.

The drop was driven by reductions across major reserve components, including foreign currency assets, gold reserves, Special Drawing Rights and India’s position with the IMF. Despite the weekly fall, the overall reserves remain near all‑time highs.

Weekly Movement in Foreign Currency Assets

Foreign currency assets, the largest component of India’s forex reserves, decreased by $1.039 billion during the week. These assets reflect holdings in major global currencies such as the euro, pound and yen.

Movements in these currencies against the US dollar also affect the valuation of FCA in dollar terms. The latest decline places FCA at $572.564 billion as of the reporting week ended February 20.

Changes In Gold Reserves

Gold reserves recorded a significant decline of $977 million during the week. The fall brought the total value of the gold component to $127.489 billion.

Weekly fluctuations in gold reserves typically reflect a combination of changes in international gold prices and the RBI’s gold‑related transactions. Gold remains the second‑largest component of India’s overall reserve composition.

SDRs And IMF Reserve Position

Special Drawing Rights held by the RBI fell by $84 million during the reporting week. This placed SDR holdings at $18.84 billion as per the central bank’s report.

Additionally, India’s reserve position with the International Monetary Fund declined by $18 million to stand at $4.716 billion. Both components contribute to overall external buffers and represent India’s rights and positions within the IMF system.

Comparison With the Previous Week

The previous reporting week had seen forex reserves touch a historic high of $725.727 billion. That increase of $8.663 billion had come from broad‑based gains across reserve categories.

The latest weekly decline partly offsets that rise yet keeps the overall reserves near record levels. India continues to maintain one of the world’s largest foreign exchange reserves, providing a strong external cushion.

Read More: India’s Economy Expands 7.8% In Q3 Under New GDP Series

Conclusion

India’s forex reserves fell by $2.119 billion to $723.608 billion for the week ended February 20, driven by declines across all major components. Foreign currency assets, gold reserves, SDRs and the IMF position all recorded weekly reductions.

Despite the dip, the reserves remain close to record highs seen in the prior week. The data reflects routine movements influenced by global currency shifts, commodity prices and market operations.

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