Mumbai, India | August 22, 2026 —
India forex reserves recorded another powerful weekly increase, climbing by $9.905 billion to $716.907 billion in the week ended August 14, according to the latest Reserve Bank of India data. The sharp rise pushed the country’s foreign exchange stockpile to a six-month high and closer to its record level.
The latest increase was led by a substantial rise in foreign currency assets, while the value of the Reserve Bank of India’s gold holdings also moved higher. India’s reserves have now expanded for seven consecutive weeks, strengthening the country’s external financial buffer at a time of heightened uncertainty in global currency and commodity markets.
Foreign Currency Assets Rise by More Than $7 Billion
Foreign currency assets, the largest component of India forex reserves, increased by $7.225 billion during the reporting week to $581.851 billion.
Foreign currency assets are reported in US dollar terms but also reflect changes in the value of other major currencies held in the reserves, including the euro, British pound and Japanese yen.
The strong weekly increase in foreign currency assets accounted for most of the overall expansion in India’s reserves.
India’s Gold Reserves Jump to $111.42 Billion
Gold also made a significant contribution.
The value of India’s gold reserves increased by $2.679 billion during the week to $111.417 billion.
Meanwhile, Special Drawing Rights, or SDRs, declined marginally by $5 million to $18.740 billion.
India’s reserve position with the International Monetary Fund increased by $5 million to $4.899 billion.
Together, these components took the country’s total foreign exchange reserves to $716.907 billion as of August 14.
Forex Reserves Have Risen for Seven Straight Weeks
The latest figures are particularly significant because India’s foreign exchange reserves have been rebuilding rapidly.
In the previous reporting week ended August 7, the country’s reserves had already surged by $14.136 billion to $707.002 billion. The latest $9.905 billion increase has extended that recovery.
Over the past seven weeks, India’s reserves have increased by roughly $50 billion, according to Reuters, bringing the stockpile closer to the record high reached earlier this year.
India Forex Reserves Move Closer to Record High
India’s foreign exchange reserves reached an all-time high of approximately $728.5 billion in February 2026.
At $716.907 billion, the latest reserve level is now only about $11.6 billion below that peak.
The rebuilding of the forex stockpile comes despite pressure on the Indian rupee and global uncertainty stemming from elevated energy prices and geopolitical tensions.
A large reserve buffer can give the RBI greater flexibility in managing excessive volatility in the foreign exchange market, although the central bank does not maintain a fixed exchange-rate target.
Strong Dollar Inflows Support India’s External Position
Recent RBI measures aimed at attracting foreign currency flows have played an important role in strengthening India’s external position.
Nearly $57 billion in inflows had been attracted through measures introduced by the central bank to improve foreign exchange availability and support India’s balance-of-payments position, according to recent reports.
The RBI has also remained active in the foreign exchange market as it seeks to contain excessive volatility in the rupee amid high crude oil prices and international uncertainty.
Why Rising Forex Reserves Matter for India
A large foreign exchange reserve position provides an important financial cushion for an economy that depends heavily on imports of crude oil and several other commodities.
Higher reserves can strengthen India’s ability to meet external payment obligations and provide the central bank with greater capacity to respond to disorderly currency-market movements.
The latest rise therefore comes at an important time for the Indian economy, particularly as geopolitical developments continue to influence crude oil prices, international capital flows and currencies.
With reserves now at $716.9 billion, attention will turn to whether continued capital inflows can push India’s forex stockpile back toward — or beyond — its February record.
