The drop comes after reserves had jumped by $6.992 billion in the preceding week to $692.721 billion. India’s forex reserves had touched a record high of $704.885 billion in late September 2024.
Despite the weekly decline, RBI Governor Sanjay Malhotra said earlier in the day that the reserves remain robust and sufficient to cover more than 11 months of goods imports and about 96% of the country’s outstanding external debt.
Foreign currency assets (FCAs), which form the largest component of the reserves, declined by $1.952 billion to $584.215 billion. FCAs expressed in dollar terms reflect the impact of movements in non-dollar currencies such as the euro, pound, and yen, the RBI noted.
Meanwhile, gold reserves rose by $723 million to $84.305 billion, providing a partial offset to the overall decline. Special Drawing Rights (SDRs) with the International Monetary Fund fell marginally by $2 million to $18.569 billion. India’s reserve position with the IMF also dipped by $6 million to $4.395 billion, RBI data showed.
India continues to maintain one of the world’s largest foreign exchange reserves, providing a strong buffer against external shocks amid ongoing global uncertainty.
First Published: Jun 6, 2025 5:55 PM IST
