India’s forex reserves jump USD 9.9 billion to USD 716.9 billion

India’s forex reserves jumped $9.9 billion to $716.9 billion in the week ended August 14, moving closer to the record high reached in February

PGurus Newsdesk

August 21, 2026

India’s foreign exchange reserves have risen for seven straight weeks, closing in on the record level reached in February

Strong inflows and higher gold holdings drive the latest rise

India’s foreign exchange reserves jumped by $9.905 billion to $716.907 billion in the week ended August 14, according to data released by the Reserve Bank of India (RBI) on Friday.

The latest increase takes the country’s forex reserves to a six-month high and brings them closer to the record level of around $728.5 billion reached in February.

The reserves have risen for seven consecutive weeks, adding around $50 billion during the period. The latest increase was largely driven by higher foreign currency assets and gold holdings.

Foreign currency assets lead the rise

Foreign currency assets, the largest component of India’s forex reserves, increased by $7.226 billion to $581.851 billion during the week under review.

The value of India’s gold reserves also rose by $2.679 billion to $111.417 billion. Special Drawing Rights declined marginally to $18.740 billion, while India’s reserve position in the International Monetary Fund increased slightly to $4.899 billion.

Strong dollar inflows boost reserves

The latest rise comes amid strong foreign currency inflows following measures introduced by the RBI in June to strengthen India’s balance of payments.

The central bank had introduced discounted hedging facilities for overseas borrowings by state-run companies and banks, along with a free hedging facility for banks raising foreign exchange deposits.

The measures attracted nearly $57 billion in inflows by August 13, including more than $50 billion through foreign exchange deposits, according to Reuters. The strong inflows prompted the RBI to bring forward the closure of its deposit hedging facility to August 31.

RBI intervention and rupee pressure

Despite the strong inflows, the RBI has continued to intervene in the foreign exchange market to manage volatility in the rupee.

The Indian currency closed at around Rs 95.69 per US dollar on Friday and recorded a weekly decline of about 0.3%, with rising oil prices and geopolitical tensions weighing on the rupee.

The rise in reserves provides India with an important buffer against external economic shocks and supports the country’s ability to meet international payment obligations.

With reserves now at $716.9 billion, India is within striking distance of its February peak, highlighting the sharp recovery in the country’s external financial position in recent weeks.

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