India's Forex Reserves Rise by $1.68 Billion to $688.94 Billion: RBI

India’s external sector position strengthened further as the country’s foreign exchange reserves rose by $1.68 billion to $688.94 billion for the week which ended December 12, 2025. According to data released by the Reserve Bank of India. The increase was primarily supported by a sharp rise in gold reserves and a modest gain in foreign currency assets (FCAs).

Latest RBI Data on Forex Reserves

As per the RBI’s weekly statistical release, India’s forex reserves increased from $687.26 billion to $688.94 billion during the reporting week.
This follows a rise of nearly $1.03 billion in the previous week ending December 5, 2025.
The steady upward trend indicates relative stability in India’s external accounts despite global economic uncertainties, including geopolitical tensions and fluctuating capital flows.

Foreign Currency Assets Show Moderate Growth

Foreign Currency Assets (FCAs), the largest component of India’s forex reserves, rose by $0.91 billion to $557.79 billion.
FCAs include holdings of major global currencies such as the US dollar, euro, pound sterling, and Japanese yen.
The value of FCAs can fluctuate due to exchange rate movements.
Appreciation or depreciation of non US currencies against the dollar directly impacts the reported value of reserves.

Gold Reserves Record a Strong Increase

India’s gold reserves rose sharply by $0.76 billion, reaching $107.74 billion. The increase highlights the RBI’s continued focus on diversifying its reserve portfolio.
Gold is considered a safe-haven asset, especially during periods of global financial uncertainty.
By steadily increasing gold holdings, the RBI reduces overdependence on foreign currencies and strengthens long-term reserve security.

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SDRs and IMF Reserve Position

India’s Special Drawing Rights (SDRs) with the International Monetary Fund rose marginally by $0.01 billion to $18.74 billion.
At the same time, India’s reserve position in the IMF also increased slightly by $0.01 billion, reaching $4.69 billion.
Though small in value, these components add to India’s overall liquidity buffer at the global level.

What Are Foreign Exchange Reserves

Foreign exchange reserves are assets held by a country’s central bank in foreign currencies and other reserve assets. They are used to,

Stabilise the domestic currency
Meet external payment obligations
Maintain confidence in the economy
Manage volatility in global financial markets

In India, forex reserves consist of foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the reserve position with the IMF.

Key Takeaways

India’s forex reserves rose by $1.68 billion to $688.94 billion.
The increase was driven mainly by higher gold reserves and a rise in foreign currency assets.
Gold reserves reached $107.74 billion, reflecting diversification strategy.
Foreign currency assets increased to $557.79 billion.
SDRs and IMF reserve position saw marginal increases.
Strong forex reserves enhance economic stability and investor confidence.