Foreign Exchange (Forex) Reserves of India
Foreign Exchange Reserves of India: Key Updates
Forex Reserves Update Summary – Week Ending June 26, 2026
Forex Reserves: India’s foreign exchange reserves stood at $666.933 billion as of the week ending June 26, 2026, registering a decline of $5.654 billion compared to the previous week.
Previous Week: In the week ending June 19, 2026, forex reserves stood at $672.587 billion.
The weekly decline was driven primarily by a sharp fall in gold reserves, which decreased by $5.394 billion to $102.536 billion. Foreign Currency Assets (FCA), the largest component of forex reserves, remained broadly stable at $541.067 billion, declining marginally by $150 million.
Special Drawing Rights (SDRs) decreased by $89 million to $18.558 billion, while the Reserve Tranche Position (RTP) in the IMF declined by $21 million to $4.772 billion.
Changes and Their Reasons in Forex Components
Foreign Currency Assets: Foreign Currency Assets (FCA), the largest component of India’s forex reserves, declined by US$150 million from US$541.217 billion to US$541.067 billion during the week ended June 26, 2026.
Possible reason: The small decline may reflect changes in the valuation of non-US dollar reserve assets (such as the euro, pound, and yen) against the US dollar and/or limited RBI intervention in the foreign exchange market.
Gold Reserves: India’s gold reserves declined by US$5.394 billion from US$107.930 billion to US$102.536 billion during the week ended June 26, 2026.
Possible reasons: The sharp decline was likely driven by a fall in international gold prices and valuation effects, rather than a significant sale of gold by the RBI.
Special Drawing Rights (SDRs): Special Drawing Rights (SDRs) declined by US$89 million from US$18.647 billion to US$18.558 billion during the week ended June 26, 2026.
Possible reason:The decrease was primarily due to valuation changes in the SDR against the US dollar.
Reserve Tranche Position (IMF): India’s Reserve Tranche Position (RTP) in the IMF declined by US$21 million from US$4.793 billion to US$4.772 billion during the week ended June 26, 2026.
Possible reason: The marginal decline was mainly due to exchange rate and valuation movements in the IMF reserve position.
Foreign Exchange Reserves of India: Historical Chart
The historical Foreign Exchange (Forex) Reserves of India are shown in the chart from 2nd Jan 2015. This chart gets updated when RBI releases new data on forex.
India's Total Forex Reserves Chart - Historical & Current Trends
Forex Reserves Componants Chart
About Foreign Exchange Reserves of India
Overview
Foreign exchange (forex) reserves are external assets held by a country’s central bank in foreign currencies. In India, these reserves are managed by the Reserve Bank of India (RBI).
India’s foreign exchange reserves play a vital role in maintaining external financial stability. They help meet international payment obligations, support confidence in the Indian economy, manage volatility in the foreign exchange market, and strengthen the country’s ability to withstand external economic shocks.
As shown in the chart and table above, India’s forex reserves fluctuate over time. These changes occur due to valuation effects arising from movements in global currency and gold prices, capital flows, and the RBI’s foreign exchange operations.
India’s foreign exchange reserves consist of the following four major components:
- Foreign Currency Assets (FCA): These are foreign currency-denominated assets such as deposits and government securities. They are primarily held in major reserve currencies, including the US dollar, euro, British pound, Japanese yen, and others.
- Gold Reserves: Gold is held by the RBI as a safe-haven reserve asset. It helps diversify India’s reserve portfolio and provides protection during periods of global financial uncertainty.
- Special Drawing Rights (SDRs): SDRs are international reserve assets created by the International Monetary Fund (IMF). Their value is based on a basket of major international currencies and they supplement member countries’ official reserves.
- Reserve Tranche Position (RTP) in the IMF: The RTP represents the portion of India’s IMF quota that can be accessed without conditions. It forms part of India’s official foreign exchange reserves.
Together, these four components constitute India’s total foreign exchange reserves, which are managed by the Reserve Bank of India to maintain external sector stability and strengthen confidence in the Indian economy.
FAQs
Forex reserves are like a country’s financial safety net, held by its central bank to support the currency and keep the financial system in balance. They usually include things like foreign currencies (with US dollars being a big part), gold, IMF reserve positions, and Special Drawing Rights (SDRs). On top of that, there are foreign banknotes, treasury bills, government securities, and bank deposits. All these pieces come together to create what’s called international reserves—a reliable stash for keeping things steady.
Countries keep forex reserves to ensure they can maintain stable monetary and exchange rate policies, step in when currency markets need a little balance, and safeguard the economy during tough financial times. These reserves also come in handy for covering imports, paying off debts, or handling unexpected emergencies, which ultimately boosts the country’s financial stability and resilience.
Having strong reserves is like having a safety net for a country—it allows it to handle currency changes and unexpected global challenges with ease. Reserves help cover import costs and foreign debts, reassure investors, and act as a cushion during tough economic times. A solid reserve level keeps the currency steady and lowers the chances of a balance of payments crisis, offering overall stability and peace of mind.
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Important
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