The foreign exchange reserves of India have surged $11.475 billion to reach an all-time high level of $740.803 billion in the week ending August 28 on account of the latest report published by the Reserve Bank of India (RBI). It should be noted that the rise in foreign exchange reserves has followed a prior rise of $12.422 billion to touch the figure of $729.328 billion during the week before, which was also a peak-level of reserves in the history of India.
India’s Foreign Exchange Reserves Reach Another All-Time High
India’s foreign exchange reserves were reported at $740.803 billion as of the week ended August 28.
It may be seen that India’s reserves have reached yet another new high, higher than the previous high level of $729.328 billion.
Prior to this rise, India’s highest reserves till date were reported at $728.494 billion during the week ending February 27, 2026.
The increase is important since India’s foreign exchange reserves were under pressure in the first part of the year.
Foreign Currency Assets Register Steep Gain
Foreign currency assets (FCA), which is the biggest part of India’s forex reserves, gained $9.337 billion during the week.
As per data from the Reserve Bank of India (RBI), FCA were recorded at $600.67 billion as on August 28.
Foreign currency assets consist of reserves of various foreign currencies such as euro, pound and yen. Their dollar value may fluctuate not just due to transactions but also due to appreciation or depreciation of these currencies vis-a-vis US dollars.
This means that the gain in FCA accounted for a major part of the recent growth in forex reserves of India.
Indian Gold Reserves Grow Steadily
India’s gold reserves grew by $2.191 billion during the reporting week.
The value of gold reserves of the country touched $116.409 billion, as per RBI.
Gold has emerged as one of the crucial parts of India’s total reserves. International gold prices may also impact the dollar value of the reserves.
The recent growth in gold reserves along with the gain in foreign currency assets helped boost the total reserves to a new high level.
SDRs and IMF Reserve Position Decrease
All the items did not record a rise in value for the week.
The SDRs that India held with the IMF fell by $43 million, amounting to $18.81 billion.
The country’s reserve position with the IMF also registered a decrease of $11 million, amounting to $4.914 billion at the close of the week.
Although there was a fall in some values, the considerable rise in foreign currency assets and gold reserves led to a strong rise in forex reserves.
Why Have Forex Reserves Increased in India?
The increase in forex reserves in India is due to the foreign exchange policy measures taken by the Reserve Bank of India in the month of June in response to pressures on the rupee.
Through these policies, there were flows of foreign exchange into the country amounting to above $132 billion, according to source information.
There were also interventions by the RBI in the foreign exchange market in times of pressures on the rupee through sales of dollars.
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