India’s foreign exchange reserves surged by $6.1 billion to $682.35 billion during the week ended July 24, 2026, marking their highest level in nearly two months, according to data released by the Reserve Bank of India (RBI).
The latest increase follows a $1.08 billion rise in the previous reporting week, when the country’s forex reserves stood at $676.23 billion, reflecting a steady recovery in the nation’s external buffers.
India’s foreign exchange reserves had earlier touched an all-time high of $728.49 billion in February 2026 before witnessing a decline amid heightened geopolitical tensions in the Middle East. The uncertainty put pressure on the Indian rupee, prompting the RBI to intervene in the foreign exchange market through dollar sales to curb excessive currency volatility.
The country’s Foreign Currency Assets (FCAs)—the largest component of the forex reserves—rose by $4.8 billion to $555.92 billion during the reporting week. FCAs, expressed in U.S. dollar terms, reflect the valuation impact of movements in major international currencies, including the euro, pound sterling and Japanese yen, held in the reserve portfolio.
India’s gold reserves also registered a significant increase, climbing $1.3 billion to $103.05 billion, underscoring the continued strength of the country’s reserve assets.
However, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) declined by $53 million to $18.61 billion, while India’s reserve position with the IMF eased marginally by $11 million to $4.75 billion during the week.
The rebound in foreign exchange reserves provides additional strength to India’s external sector by enhancing the country’s ability to manage exchange rate volatility, finance imports and meet external debt obligations amid an evolving global economic and geopolitical environment.
In recent months, Prime Minister Narendra Modi has also urged citizens to help conserve foreign exchange by reducing non-essential overseas travel, limiting fuel consumption and avoiding gold purchases for a year as part of broader efforts to strengthen India’s external financial position.
