India’s Forex Reserves Hit $729.33B: RBI’s Impact
By Market Desk
India’s foreign exchange reserves jumped by $12.42B to $729.33B by Aug 21, 2026, boosted by RBI’s strategic measures and strong foreign currency and gold asset growth.
India’s foreign exchange reserves surged by USD 12.42 billion in the week ending August 21, 2026, pushing the total reserves to USD 729.33 billion. This notable increase, reported by the Reserve Bank of India (RBI), was primarily driven by a robust rise in foreign currency assets and a strong performance in gold reserves.
The central bank’s strategic measures, implemented in June, played a crucial role in attracting sustained foreign-currency inflows. These initiatives were designed to draw in overseas deposits and foreign-currency borrowings, a portion of which was subsequently accumulated in the nation’s reserves.
Components of the Reserve Growth
Foreign Currency Assets (FCAs), which form the largest segment of India’s reserves, saw an increase of USD 9.48 billion during the week. This brought the total FCA value to USD 591.33 billion.
Gold reserves also made a substantial contribution, climbing by USD 2.80 billion to reach USD 114.22 billion in the same week. This marked a significant year-on-year increase of USD 29.22 billion for gold holdings.
India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by USD 112 million, reaching USD 18.85 billion. Concurrently, the country’s reserve position in the IMF increased by USD 26 million, settling at USD 4.93 billion.
Broader Context of Reserve Performance
Looking at a broader timeline, FCAs were higher by USD 9.08 billion on a year-on-year basis. This consistent improvement underscores India’s strengthening external reserve position.
Overall, the reserves have demonstrated significant growth, expanding by USD 38.22 billion from the end of March 2026. Over the entire year, the total growth stands at USD 38.61 billion, providing a substantial foreign exchange buffer for the economy.