New Delhi | September 27,2025 | Sky Link Times
India’s Foreign Exchange Declined:
India’s Foreign Exchange (forex) reserves recorded a decline of $396 million, dropping to $702.57 billion for the week ended September 19, 2025, according to the latest data released by the Reserve Bank of India (RBI).
The fall comes after reserves rose sharply by $4.698 billion in the previous week, taking them close to the record-high territory.
Table of Contents
Foreign Currency Assets Take a Hit
The largest component of the reserves — foreign currency assets (FCA) — saw a fall of $864 million, bringing the total down to $586.15 billion. FCAs include the value of major non-US currencies such as the euro, pound sterling, and Japanese yen, adjusted against the US dollar.
Economists note that fluctuations in global currency markets and capital outflows often contribute to weekly changes in this category.
Gold Reserves on the Rise
In contrast, India’s gold reserves increased by $360 million, reaching $92.779 billion. Analysts suggest that central banks, including the RBI, often use gold as a hedge against currency volatility, and the rise indicates continued diversification of reserve assets.
SDRs and IMF Position Improve
The data further showed that India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $105 million, pushing the total to $18.879 billion. Meanwhile, India’s reserve position with the IMF inched up by $2 million, standing at $4.762 billion.
Also Read:https://skylinktimes.in/pm-modi-inaugurates-tripura-sundari-temple/
Why Are Forex Reserves Important?
Forex reserves act as a financial buffer for the country, helping the RBI manage currency fluctuations, pay for imports, and meet external debt obligations. A healthy reserve level also boosts investor confidence and strengthens India’s ability to withstand global economic shocks.
Despite the slight dip, India’s reserves remain above the $700 billion mark, positioning it among the top global holders of foreign exchange reserves.
Outlook Ahead
Experts believe that while short-term weekly fluctuations are common, the overall trend of India’s reserves remains strong. With global crude oil prices, capital flows, and currency volatility continuing to influence reserve movements, the RBI is expected to maintain its cautious approach in managing the country’s foreign assets.
For More Info Stay Tuned: https://skylinktimes.in
