India’s Forex Reserves Surge by $14.1 Billion to $707 Billion

India’s foreign exchange reserves recorded a sharp increase of $14.1 billion to reach $707 billion during the week ended August 7, 2026, strengthening the country’s external financial position.

Reserve Bank of India data showed total reserves rising to $707.002 billion, compared with $692.866 billion in the previous week. The increase was the largest weekly rise since January 2026 and took reserves to a four-month high.

Foreign Currency Assets Rise Nearly $10 Billion

Foreign currency assets, the largest component of India’s reserves, increased by $9.946 billion to $574.625 billion during the week.

Foreign currency assets include holdings denominated in currencies such as the euro, pound and yen. Their dollar value can therefore also change due to movements in exchange rates.

The rise in foreign currency assets accounted for most of the overall weekly increase in reserves.

Gold Reserves Climb to $108.7 Billion

India’s gold reserves also registered a strong increase.

The value of gold held as part of the country’s foreign exchange reserves rose by $3.995 billion to $108.738 billion.

Special Drawing Rights increased by $79 million to $18.745 billion, while India’s reserve position with the International Monetary Fund rose by $116 million to $4.894 billion.

The reserve position on August 7 therefore stood at:

• Foreign currency assets — $574.625 billion
• Gold reserves — $108.738 billion
• Special Drawing Rights — $18.745 billion
• IMF reserve position — $4.894 billion
• Total reserves — $707.002 billion

Reserves Rise for Sixth Consecutive Week

The latest increase continues a broader recovery in India’s foreign exchange reserves.

The reserve stock has increased by roughly $40 billion over six weeks, supported by strong foreign currency inflows. The previous reporting week itself had recorded an increase of about $10.5 billion.

The latest $707-billion level remains below the record $728.49 billion reached in February 2026, but represents a substantial recovery from the decline witnessed in the following months.

Policy Measures Support Dollar Inflows

Recent measures introduced to strengthen India’s balance of payments have contributed to the rise in foreign currency inflows.

These include facilities aimed at encouraging Foreign Currency Non-Resident Bank deposits, overseas foreign currency borrowings and external commercial borrowings. Policy measures have also sought to reduce hedging costs and attract additional overseas capital.

Between June 8 and July 31, currency swap facilities attracted more than $40 billion in foreign exchange flows, while overseas investors also purchased Indian government bonds under the Fully Accessible Route.

Why Higher Forex Reserves Matter

A large foreign exchange reserve provides an important financial buffer for an economy that remains deeply connected to international trade and capital markets.

The reserves help India meet external payment requirements, manage periods of global financial volatility and provide the RBI with greater capacity to respond to excessive movements in the rupee.

They also strengthen confidence in India’s ability to finance imports and service external obligations during periods of international uncertainty.

The increase to $707 billion therefore represents more than a weekly statistical gain. Combined with the strong rise in foreign currency assets and gold holdings, it strengthens India’s external financial cushion at a time when global currency, commodity and capital markets remain volatile.

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Source: Reserve Bank of India data reported by Akashvani News, 14 August 2026.

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