India’s foreign exchange reserves rose by $3.5 billion in the latest week to $694.2 billion, backed by foreign currency assets
In its latest “weekly statistical supplement”, the Reserve Bank of India (RBI) said that India’s foreign exchange reserves rose by $3.5 billion in the week between August 29 and $694.23 billion, mainly driven by the growth of foreign currency assets and gold. The country’s Forex Kittens hovered at its all-time high of $7004.89 billion in September 2024.
During the reporting week, the Indian Forex Assets (FCA) was the largest component of foreign exchange reserves, up $1.7 billion at $583.97 billion.
Data from the Reserve Bank of India shows that current gold reserves are $86.76 billion, witnessing a $1.8 billion increase.
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Following the latest monetary policy review meeting, Reserve Bank of India Governor Sanjay Malhotra said the forex kittens were enough for the country’s 11 months of imports.
In 2023, India increased its foreign exchange reserves by about $58 billion, compared with a cumulative decline of $71 billion in 2022.
In 2024, reserves rose by more than US$20 billion. Data shows that so far, forex kittens have increased by about $53 billion in 2025.
Foreign exchange reserves or FX reserves are assets held by national central banks or monetary authorities, mainly used in reserve currencies such as the US dollar, the euro, the Japanese yen and the British pound in small quantities.
The Reserve Bank of India usually prevents the depreciation of the rupee by managing liquidity, including selling USD. When the rupee is strong, the RBI strategically buys the dollar and sells it when it weakens.
