Mumbai: India’s foreign exchange reserves have continued their upward momentum for the fourth consecutive week, supported by a rise in both foreign currency assets (FCA) and gold reserves. According to data released by the Reserve Bank of India (RBI), the country’s forex reserves increased by $3.293 billion during the week ended December 26, 2025.
With this increase, India’s total foreign exchange reserves have climbed to $696.610 billion. In the previous week, reserves had risen by $4.368 billion, while a week earlier they had grown by $1.689 billion. India’s all-time high forex reserve level of $704.885 billion was recorded during the week ended September 27, 2024.
Gold Plays a Key Role
A major factor behind the latest rise has been the strengthening of gold reserves, along with an increase in foreign currency assets. Gold has increasingly emerged as a stabilising component of India’s reserve portfolio amid global economic uncertainty and currency fluctuations.
Foreign Currency Assets Increase
As per the RBI’s weekly statistical supplement, India’s foreign currency assets rose by $184 million during the week ended December 26, 2025. In the preceding week, FCA had witnessed a sharper increase of $1.641 billion. With the latest addition, total foreign currency assets now stand at $559.612 billion.
Foreign currency assets form the largest component of India’s forex reserves. These assets, expressed in US dollar terms, also reflect the impact of appreciation or depreciation of non-US currencies such as the euro, pound sterling, and Japanese yen held in the reserve basket.
Strong External Position
The consistent rise in forex reserves strengthens India’s external sector position and provides a cushion against global financial volatility. Higher reserves enhance the country’s ability to manage currency fluctuations, meet external obligations, and maintain overall macroeconomic stability.
With reserves inching closer to their historic peak once again, India’s forex position remains robust, underlining improved capital flows and prudent reserve management by the central bank.