India’s foreign exchange reserves reached a new peak of $728.494 billion by surging $4.885 billion in the week ending February 27, as per data from the Reserve Bank of India. The previous high was $725.727 billion in mid-February. Foreign currency assets, including non-US units like the euro, pound, and yen, stood at $573.125 billion during that week.
The gold component of India’s foreign exchange reserves rose by over $4.141 billion to $131.63 billion by the end of February 27. Central banks globally have been increasing their gold reserves due to geopolitical uncertainties. The RBI’s gold holdings have almost doubled since 2021, with approximately 75 tonnes added since 2024.
The special drawing rights in India’s forex reserves saw a $26 million increase to $18.866 billion. The growth in foreign exchange reserves provides the RBI with more flexibility to stabilize the rupee against the US dollar. Adequate reserves allow the RBI to intervene in currency markets to prevent sharp rupee depreciation.
India’s current account deficit for the third quarter of the financial year 2025–26 stood at $13.2 billion, or 1.3% of GDP, according to RBI data. The merchandise trade deficit rose to $93.6 billion in Q3FY26, but there was a significant increase in services exports and remittances from Indians abroad.
