India’s foreign exchange reserves surged by $4.553 billion to reach $690.617 billion for the week ending May 9, 2025, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a strong recovery after a decline of $2.065 billion in the previous week, bringing the reserves closer to their all-time high of $704.885 billion, recorded in late September 2024.
The increase was primarily driven by a significant rise in gold reserves, which jumped by $4.518 billion to $86.337 billion, reflecting both a potential increase in gold holdings and the impact of global gold price movements. Foreign currency assets (FCAs), the largest component of the reserves, also grew by $196 million to $581.373 billion. These assets include the effects of currency fluctuations in non-US denominations like the euro, pound, and yen.
However, other components of the reserves showed mixed performance. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) fell by $26 million to $18.532 billion, while India’s reserve position with the IMF dropped by $134 million to $4.374 billion.
The recent surge in forex reserves strengthens India’s financial position, providing a critical buffer against external shocks and supporting the stability of the Indian rupee amid global economic uncertainties.
