India’s Foreign Reserves Touch $687.26 Billion In December 2025

India’s foreign exchange reserves saw a moderate rise in the week ending December 12, 2025, increasing by USD 1.03 billion to reach USD 687.26 billion. The Reserve Bank of India (RBI) released this update, noting that the central bank continues to monitor the foreign exchange market closely to ensure stability. The latest rise comes after a decline in the previous week, signalling a balanced recovery supported by gold reserves and SDR gains.

Latest Data

According to RBI’s weekly statistical supplement, the components of the reserves moved as follows,

Key Movements Category Wise

• Total forex reserves: Up by USD 1.03 billion, now at USD 687.26 billion
• Foreign Currency Assets (FCA): Fell by USD 151 million to USD 556.88 billion
• Gold reserves: Increased notably by USD 1.188 billion to USD 106.984 billion
• Special Drawing Rights (SDRs): Rose by USD 93 million to USD 18.721 billion

FCA remains the largest segment of India’s forex basket, and its movement reflects changes in the valuation of currencies such as the euro, pound, and yen against the US dollar.

What is Forex Resrves?

Forex reserves are crucial for maintaining confidence in the economy, stabilising the currency, and meeting external obligations. India’s reserves include,

1. Foreign Currency Assets (FCA)
2. Gold reserves
3. Special Drawing Rights (SDRs)
4. RBI’s reserve position with the IMF

In the previous week, reserves had fallen by USD 1.877 billion, making this week’s uptick an important reversal. These fluctuations typically reflect changes in global currency movements, foreign investment flows, and RBI’s market interventions.

Factor Behind Rise

• The latest rise in reserves comes at a time of ongoing volatility in global currency markets.
• Gold prices have remained strong internationally, contributing significantly to the increase in India’s gold reserves valuation.
• SDRs also rised during the week, reflecting India’s strengthened position in the IMF’s special reserve system.
• Despite the fall in FCA, the overall reserve position improved due to gains in other components.

Key Takeaways

• Forex reserves increased by $1.03 billion to $687.26 billion.
• FCA declined by $151 million, but gold reserves rose by $1.188 billion.
• SDRs increased by $93 million, adding to the overall rise.
• Previous week saw a drop of $1.877 billion in reserves.
• RBI continues to monitor market movements to ensure stability.