India forex reserves climb to USD 702.28 billion, nearing record high

New Delhi [India], October 26 (ANI): India's foreign exchange reserves rose by USD 4.5 billion in the week that ended October 17 to USD 702.280 billion, primarily driven by a rise in gold reserves, the Reserve Bank of India (RBI) said in its latest 'Weekly Statistical Supplement'.
The country's forex kitty is hovering close to its all-time high of USD 704.89 billion touched in September 2024.
For the reported week, India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 570.411 billion, down USD 1.692 billion.
The RBI data showed that gold reserves currently stand at USD 108.546 billion, up USD 6.181 billion from the previous week. The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties.
After the latest monetary policy review meeting, RBI Governor Sanjay Malhotra had said the foreign exchange kitty was sufficient to cover more than 11 months of merchandise imports. Overall, India's external sector continues to be resilient, and the RBI remains confident of meeting its external obligations comfortably.
In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022.
In 2024, the reserves rose by a little over USD 20 billion. So far in 2025, the forex kitty has cumulatively increased by about USD 53 billion, according to data.
Foreign exchange reserves, or FX 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 steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)