India’s foreign exchange reserves surged by $8.663 billion to reach an unprecedented $725.727 billion by the week ending February 13, as per data disclosed by the Reserve Bank of India (RBI). The increase follows a $6.711 billion decline in the preceding week attributed to a drop in gold prices. Gold reserves, a significant component of the foreign exchange reserves, rose by $4.990 billion to $128.466 billion during the same period.
Foreign Currency Assets (FCA), the primary element of the foreign exchange reserves, climbed by $3.550 billion to $573.603 billion. FCA encompasses various major global currencies like the dollar, yen, euro, and pound, with their values denominated in dollars. The value of Special Drawing Rights (SDRs) grew by $103 million to $18.924 billion, while India’s reserve position with the RBI increased by $19 million to $4.734 billion by February 13.
Foreign exchange reserves are vital for a country, serving as a barometer of its economic well-being and playing a crucial role in stabilizing currency exchange rates. These reserves enable the central bank to counter pressure on the rupee against the dollar, ensuring a steady exchange rate. The swelling reserves signify a substantial influx of dollars into the nation, bolstering the economy and facilitating smoother international trade.
India continues to lead in remittances globally, with inflows hitting $135.4 billion in FY25, as per the Economic Survey 2025-26. Despite global financial constraints, India attracted substantial gross investment inflows amounting to 18.5% of GDP in FY25, underscoring stability in the external account.
