India’s forex reserves jump $9.9 billion to $716.9 billion, near February record

August 21, 2026

New Delhi: India’s foreign exchange reserves increased by nearly USD 10 billion in the week ended August 14, taking the country’s total forex reserves to USD 716.907 billion, according to the latest data released by the Reserve Bank of India (RBI) on Friday.

The reserves rose by USD 9.905 billion during the week, following an increase of USD 14.136 billion in the previous week. The latest rise has pushed India’s forex reserves further above the USD 700-billion mark and closer to the record level recorded earlier this year.

Forex reserves move closer to record high

India’s foreign exchange reserves had touched an all-time high of USD 728.494 billion in the week ended February 27.

The reserves subsequently declined amid heightened global uncertainty and volatility in currency markets. Geopolitical developments also put pressure on the Indian rupee, prompting the RBI to intervene in the foreign exchange market.

At the latest level of USD 716.907 billion, India’s forex reserves remain around USD 11.6 billion below the February record.

Foreign currency assets drive increase

Foreign currency assets, the largest component of India’s forex reserves, contributed significantly to the latest weekly increase.

According to RBI data, foreign currency assets rose by USD 7.225 billion to USD 581.851 billion during the week.

These assets are reported in US dollar terms and their value can change with movements in major currencies such as the euro, pound and Japanese yen.

Gold reserves also rise

India’s gold reserves also recorded a substantial increase during the reporting week.

The value of gold reserves rose by USD 2.679 billion to USD 111.417 billion.

Meanwhile, the Special Drawing Rights (SDR) component declined marginally by USD 5 million to USD 18.74 billion. India’s reserve position with the International Monetary Fund (IMF) increased by USD 5 million to USD 4.899 billion.

Measures support foreign exchange inflows

The increase in reserves also comes amid measures by the government and RBI aimed at encouraging foreign exchange inflows.

Under the concessional swap measures, India had received USD 56.85 billion as of August 13, according to the information provided.

Such measures are aimed at strengthening India’s external buffers and ensuring adequate foreign exchange availability amid global financial and geopolitical uncertainties.

Why rising forex reserves matter

Foreign exchange reserves provide an important buffer against external economic shocks. They help support confidence in the domestic currency, meet foreign exchange requirements and provide the central bank with greater flexibility during periods of market volatility.

With reserves at USD 716.907 billion, India has recovered a significant portion of the reserves lost after the February peak. The reserve position, however, will continue to depend on currency movements, capital flows, global commodity prices and geopolitical developments.