India’s foreign exchange reserves fell by $2.54 billion to $635.72 billion in the week ending February 14, 2025, according to the latest data from the Reserve Bank of India (RBI). The decline was primarily driven by a sharp dip in foreign currency assets (FCA), which dropped by $4.52 billion to $539.59 billion.
Despite the overall decline, gold reserves saw a notable increase of $1.94 billion, reaching $74.15 billion. The rise in gold reserves suggests a strategic shift in asset composition amid global market fluctuations.
India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) inched up slightly by $19 million to $17.9 billion, while the reserve position in the IMF recorded a minor increase of $14 million, standing at $4.08 billion.
On a year-on-year basis, forex reserves have grown by $19.62 billion, driven largely by a $26.77 billion rise in gold reserves. However, FCA has shrunk by $6.19 billion, reflecting potential capital outflows and exchange rate adjustments.
Since end-March 2024, India’s forex reserves have declined by $10.69 billion, indicating a fluctuating trend amid evolving global economic conditions.