India’s FX reserves fall below $700 billion for the first time in over two months
- Reserves fell to $698.35 billion, led largely by the value of the central bank’s gold holdings dropping by $13.5 billion week-on-week to $117.2 billion
MUMBAI: India’s foreign exchange reserves fell below the $700 billion mark in the week ended March 20, the first such fall since January and downfrom $709.76 billion a week earlier, data released by the Reserve Bank of India showed on Friday.
Reserves fell to $698.35 billion, led largely by the value of the central bank’s gold holdings dropping by $13.5 billion week-on-week to $117.2 billion.
Meanwhile, the value of foreign currency assets rose by $2.1 billion week-on-week.
In the week to which the data pertained, gold prices had declined by 10% and the rupee fell to its then-record low of 93.7350 as worries over an elongated Iran war lifted oil prices, hurting Indian assets across the board.
The currency has since extended its losses, falling to a record low of 94.84 on Friday, down over 5% year-to-date.
India forex reserves adequate to cushion against external shocks, central bank report says
Before headwinds emerging from the Iran war pummeled the rupee, India’s FX reserves had hit a record high of $728.5 billion in late February.
The RBI intervened in the foreign exchange market to defend the rupee, but bankers have pointed out that the central bank has adopted a more passive approach over recent trading sessions.
Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves.
Foreign exchange reserves include India’s Reserve Tranche position in the International Monetary Fund.
FOREIGN EXCHANGE RESERVES (in million U.S. dollars)
March 20 March 13
2026 2026
Foreign currency assets 557,695 555,568
Gold 117,186 130,681
SDRs 18,632 18,697
Reserve Tranche Position 4,833 4,814
Total 698,346 709,759
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