India’s Forex Reserves Hit Record $729 Billion

India’s foreign exchange reserves reached an unprecedented high of $729.328 billion for the week ending on August 21, 2026, according to data from the Reserve Bank of India. This significant milestone represents an increase of $12.422 billion from the previous week, surpassing the prior record set in February of the same year.

Key Reserve Figures

• Total Reserves: $729.328 billion (week ending August 21, 2026)
• Weekly Increase: $12.422 billion
• Previous Week’s Increase: $9.905 billion (totaling $716.907 billion)
• Previous Record High: $728.494 billion (achieved in February 2026)

A primary catalyst for this surge was the substantial growth in foreign currency assets, which expanded by $9.482 billion to reach $591.333 billion. These assets reflect the fluctuating values of non-US currencies such as the euro, pound, and yen held within the reserves.

Components of the Reserve Growth

• Foreign Currency Assets: Increased by $9.482 billion to $591.333 billion
• Gold Reserves: Rose by $2.801 billion to $114.218 billion
• Special Drawing Rights (SDRs): Grew by $112 million to $18.852 billion
• India’s Reserve Position with IMF: Improved by $26 million to $4.925 billion

These positive shifts are largely attributed to strategic measures implemented by the central bank and the government during the previous month. These initiatives were designed specifically to attract greater foreign exchange inflows into the country, bolstering its financial strength.

Notably, concessional swap measures, including the Foreign Currency Non-Resident (Bank) or FCNR(B) scheme, have successfully drawn in a substantial $72 billion. This inflow played a critical role in pushing the reserves to their current record levels, recovering from a temporary decline earlier in the year.

The previous record of $728.494 billion was achieved in February 2026, but reserves saw a temporary decline thereafter due to the Reserve Bank of India’s interventions in the forex market amidst the Middle East conflict. The current record demonstrates a strong recovery and an enhanced buffer against global economic volatilities.