India’s Forex Reserves Fall by $4.47 Billion to $688.1 Billion: RBI

India’s foreign exchange reserves witnessed a sharp decline of USD 4.472 billion, bringing the total down to USD 688.104 billion for the week ending November 21, 2025, according to data released by the Reserve Bank of India (RBI). This fall follows a USD 5.543 billion increase in the previous reporting week and is primarily attributed to a significant drop in the value of gold reserves and foreign currency assets.

Components of the Decline

1. Foreign Currency Assets (FCAs)

• FCAs, which form the largest component of India’s forex reserves, dropped by USD 1.69 billion, reaching USD 560.6 billion.
• These assets are maintained in major global currencies like the euro, pound, and yen, and their dollar value fluctuates based on currency appreciation or depreciation.

2. Gold Reserves

• The value of gold reserves saw a steep decline of USD 2.675 billion, falling to USD 104.182 billion.
• This indicates a global correction in gold prices or portfolio rebalancing by the RBI.

3. Special Drawing Rights (SDRs)

• SDRs, the international reserve asset created by the International Monetary Fund (IMF), also declined by USD 84 million, reaching USD 18.566 billion.

4. IMF Reserve Position

• India’s reserve position with the IMF dropped by USD 23 million, closing at USD 4.757 billion.

Background: What Are Forex Reserves?

Foreign exchange reserves are external assets held by the RBI in foreign currencies, used to back liabilities and influence monetary policy. These typically include,

• Foreign currency assets (FCAs)
• Gold reserves
• Special Drawing Rights (SDRs)
• Reserve position with the IMF

Forex reserves serve as a cushion against external shocks, manage currency volatility, support imports, and enhance investor confidence.

India’s reserves peaked earlier in 2025 at over USD 700 billion, helping maintain currency stability and financing trade deficits.

Significance of This Decline

While India’s overall forex reserves remain robust, the week’s decline highlights a few concerns,

• Global market fluctuations, including changes in currency and gold valuations, directly impact reserve values.
• The drop in gold reserves reflects either falling global gold prices or active reallocation by the central bank.
• SDR and IMF position changes show ongoing adjustments in India’s engagement with multilateral financial institutions.
• Despite this fall, India still maintains one of the world’s largest forex reserves, ensuring a strong buffer against global uncertainties, including oil price volatility and capital outflows.

Key Static Facts

• India’s forex reserves (Nov 21, 2025): USD 688.104 billion
• Weekly decline: USD 4.472 billion
• Previous week’s reserves: USD 692.576 billion
• Foreign Currency Assets: USD 560.6 billion
• Gold Reserves: USD 104.182 billion
• SDRs: USD 18.566 billion
• IMF Reserve Position: USD 4.757 billion
• Maintained by: Reserve Bank of India (RBI)
• SDRs issued by: International Monetary Fund (IMF)