India’s foreign exchange (forex) reserves surged to a seven-month high of $690.61 billion as of 9 May 2025, according to data released by the Reserve Bank of India (RBI) on Friday, 16 May. The reserves rose by $4.6 billion from the previous week’s total of $686 billion.
The increase reflects a marginal rise in foreign currency assets, which now stand at $581.37 billion, slightly up from $581.17 billion. These assets are valued in US dollars but include holdings in other currencies like the euro, pound, and yen, whose value fluctuates with exchange rate movements.
Gold Reserves Surge Amid Global Uncertainty
India’s gold reserves saw a sharp increase, rising by $4.51 billion to reach $86.33 billion. The earlier level stood at $81.82 billion. Analysts attribute the rise to increased central bank gold purchases globally, driven by geopolitical tensions and economic uncertainty.
India’s growing tensions with Pakistan and tariff threats from the US under former President Donald Trump have fuelled the demand for gold, a traditional safe-haven asset. Central banks, including India’s, are increasing gold holdings to safeguard against currency instability and global shocks.
Special Drawing Rights (SDRs), another component of India’s forex basket, dipped by $26 million to $18.532 billion. The reserve position in the International Monetary Fund (IMF) also dropped, falling by $135 million to $4.374 billion.
Together with gold and foreign currency assets, SDRs and the IMF reserve position make up the full composition of India’s forex reserves.
The RBI uses its forex reserves to manage volatility in the Indian Rupee. Interventions by the central bank influence foreign currency assets, depending on the appreciation or depreciation of the currencies held.
As of 18 May 2025, the Indian Rupee traded at ₹85.60 against the US dollar, based on data from Morningstar at 6:29 p.m. (UTC).
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