India’s Foreign Exchange Reserves Surge by $12.42 Billion to $729.33 Billion

India’s foreign exchange reserves recorded a sharp weekly increase of $12.42 billion, rising to $729.33 billion in the week ended 21 August 2026, according to the latest data released by the Reserve Bank of India.

The rise was driven primarily by a substantial increase in foreign currency assets, while the value of gold held as part of the country’s reserves also climbed strongly during the week.

Foreign Currency Assets Rise by $9.48 Billion

Foreign currency assets, the largest component of India’s reserve stock, increased by $9.48 billion to $591.33 billion.

These assets include holdings denominated in major international currencies and are also influenced by changes in the value of currencies such as the euro, pound sterling and Japanese yen against the US dollar.

In rupee terms, foreign currency assets increased by about ₹1.08 lakh crore during the week, reaching approximately ₹56.60 lakh crore.

The sharp rise comes amid continued foreign-currency inflows into India. Recent measures aimed at attracting overseas deposits and foreign-currency borrowings have also contributed to improving the availability of foreign exchange in the domestic financial system.

Gold Reserves Climb to $114.22 Billion

India’s gold reserves also made a significant contribution to the weekly increase.

The value of gold held by the RBI rose by $2.80 billion to $114.22 billion during the week. Compared with a year earlier, the value of India’s gold reserves has increased by approximately $29.22 billion.

The rise reflects both the changing international value of gold and the increasing importance of the metal within India’s overall reserve composition.

In rupee terms, the RBI’s gold holdings increased by about ₹30,022 crore during the week.

SDRs and IMF Reserve Position Also Increase

The smaller components of India’s foreign exchange reserves also registered modest gains.

India’s Special Drawing Rights with the International Monetary Fund increased by $112 million to $18.85 billion, while the country’s reserve position with the IMF rose by $26 million to $4.93 billion.

Together, the increase across foreign currency assets, gold, SDRs and the IMF reserve position pushed the overall reserve stock substantially higher.

Reserves Up More Than $38 Billion Since March

India’s foreign exchange reserves have now increased by approximately $38.22 billion since the end of March 2026.

On a year-on-year basis, reserves are higher by around $38.61 billion, indicating a sustained strengthening of the country’s external reserve position.

In rupee terms, total foreign exchange reserves stood at approximately ₹69.81 lakh crore as of 21 August.

Stronger External Buffer for the Economy

A large stock of foreign exchange reserves provides the economy with an important buffer against volatility in international financial markets.

Reserves can help the RBI manage periods of excessive currency-market instability, meet external payment requirements and strengthen confidence in India’s ability to withstand global financial shocks.

They are also particularly important at a time when international markets remain sensitive to movements in crude oil prices, capital flows, interest rates and geopolitical developments.

With reserves now at $729.33 billion, India enters the latter part of 2026 with a substantially larger external cushion than it had at the end of the previous financial year.

The latest weekly increase therefore reflects not only a sharp rise in foreign currency holdings and gold valuations, but also a broader improvement in India’s external financial position.

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