Mumbai: India’s foreign exchange reserves (forex reserves) rose by $2.703 billion to $698.192 billion in the week ended July 25, 2025, the Reserve Bank of India (RBI) said in its weekly data released on August 1, 2025. Although the reserves declined by $1.183 billion to $695.489 billion in the previous week, there was a significant increase this week.
Details of components of forex reserves
Foreign Currency Assets : Foreign currency assets, the largest component of forex reserves, rose by $1.316 billion to $588.926 billion. These assets are denominated in dollars, which also includes the impact of changes in the value of other currencies such as the euro, pound, and yen.
Gold Reserves : Gold reserves increased by $1.206 billion to $85.704 billion, providing stability during times of economic uncertainty.
Special Drawing Rights (SDRs): SDRs in the International Monetary Fund (IMF) increased by $126 million to $18.809 billion.
Reserve position in IMF: India’s reserve position in the IMF increased by $55 million to $4.753 billion.
Economic importance
Experts believe that this increase indicates a strong external sector of the Indian economy and will act as a strong buffer for the RBI’s interventions to stabilize the rupee. The RBI intervenes in the foreign exchange sector to control sharp fluctuations in the value of the rupee, which is intended to maintain stable market conditions rather than targeting a specific rupee value.
These reserves can cover 11 months of imports and support up to 96% of the country’s external debt, RBI Governor Sanjay Malhotra said. Moreover, a significant increase in foreign direct investment (FDI) last month ($8.8 billion in April 2025) has contributed to this financial stability, the RBI bulletin revealed.
Social media reaction
The news sparked positive discussions on the X platform. One user posted: “India’s forex reserves reaching $698.19 billion indicates economic strength!” while another said that RBI’s strategic management is key to rupee stability.
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