India’s foreign exchange reserves surged by $1.689 billion to $688.94 billion in the week ending December 12, according to data released by the Reserve Bank of India (RBI). This marks the second consecutive weekly increase, reflecting strengthening external sector stability.
The rise was driven by gains in key reserve components:
- Foreign Currency Assets (FCAs) increased by $906 million, reaching $557.79 billion.
- Gold reserves rose by $758 million to $107.74 billion.
- Special Drawing Rights (SDRs) edged up $14 million to $18.745 billion.
- Reserve Position at the IMF grew by $11 million to $4.686 billion.
The RBI noted that these increases provide greater flexibility to manage currency fluctuations, support imports, and strengthen India’s external debt position. Analysts said the consistent growth in reserves signals rising investor confidence and helps mitigate global market volatility.
Reserve Trends Over Two Weeks
| Week Ending | Total Forex Reserves | Weekly Change |
|---|---|---|
| Dec 5, 2025 | $687.26 billion | +$1.03 billion |
| Dec 12, 2025 | $688.94 billion | +$1.689 billion |
Experts highlight that robust forex reserves are essential for maintaining macroeconomic stability, supporting the rupee, and providing a buffer against external shocks. With global trade uncertainties and fluctuating capital flows, India’s steadily rising reserves strengthen its financial resilience.
