Foreign Currency Assets Lead India's $707bn Reserve Jump

New Delhi – The RBI’s weekly data for the week ending August 7 shows India’s total forex reserves at $707.002 billion, a rise of $14.136 billion from the previous week. The increase is largely driven by a jump in Foreign Currency Assets (FCA), which rose by $9.9946 billion to $574.625 billion.

FCA covers a basket of global currencies, including the US dollar, euro, yen and pound, measured in dollar terms. This component now accounts for roughly 81% of the total reserve stock.

Gold reserves slipped by $3.995 billion to $108.738 billion, partially offsetting the overall gain. SDR holdings grew modestly by $79 million to $18.745 billion, and the RBI’s own reserve position climbed by $116 million to $4.894 billion.

The reserve level surpasses $700 billion for the first time in four months, reversing a dip that followed recent geopolitical tensions in the Middle East.

A healthy reserve pool is essential for managing exchange‑rate volatility. When the rupee comes under downward pressure, the RBI can draw on these assets to stabilise the market and maintain confidence among investors and traders.

The upward trajectory signals strong dollar inflows, bolstering India’s external financial strength and facilitating smoother international trade.