India’s forex reserves dropped by $2.11 billion to $723.608 billion which are according to the latest data released by the Reserve Bank of India (RBI). The decline comes after fluctuations in global currency markets and valuation changes in foreign assets. The fall in India forex reserves was mainly driven by a reduction in foreign currency assets. Despite the drop, India continues to maintain one of the world’s largest foreign exchange reserves, strengthening its external stability.
India Forex Reserves Drop: RBI Weekly Data Explained
- As per the Reserve Bank of India, India’s forex reserves stood at $723.608 billion for the week ending February 20, 2026.
- The reserves declined by $2.11 billion compared to the previous week.
- The main component, foreign currency assets (FCA), recorded a fall due to global currency fluctuations.
- Forex reserves include FCA, gold reserves, Special Drawing Rights (SDRs) and reserve position in the IMF.
- RBI releases forex data weekly to monitor India’s external sector stability.
- The latest RBI forex data reflects valuation changes in non-dollar assets like the euro, yen, and pound.
Components of India Forex Reserves and What Changed
- Foreign Currency Assets (FCA): The largest portion of India forex reserves, impacted by currency market movements.
- Gold Reserves: Held as a safe asset and hedge against inflation and global risks.
- Special Drawing Rights (SDRs): International reserve assets allocated by the IMF.
- Reserve Position in IMF: India’s reserve tranche position with the International Monetary Fund.
The recent drop in India forex reserves was mainly linked to the decline in foreign currency assets rather than a sharp fall in gold reserves.
Why India Forex Reserves Drop Matters for the Economy
- Forex reserves help manage exchange rate volatility.
- They support imports and external debt payments.
- High reserves boost investor confidence.
- A moderate weekly drop is common due to valuation changes.
- India remains among the top countries globally in terms of reserve size.
- Even after the decline, India forex reserves above $723 billion indicate strong external buffers.
Background: India’s Forex Reserve Position Globally
- India has built significant foreign exchange reserves over the last decade, especially after periods of capital inflows and strong export performance.
- Forex reserves peaked above $700 billion in recent years, providing a safety cushion against global financial shocks.
- The RBI actively manages reserves to stabilize the rupee during volatility.
- Globally, countries like China and Japan hold the largest reserves, but India remains among the top reserve holding nations. Strong reserves enhance India’s macroeconomic stability and credit profile.
Question
Q. India’s forex reserves stood at how much for the week ending February 20, 2026?
A. $710.500 billion
B. $723.608 billion
C. $750.200 billion
D. $698.400 billion
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