Forex Monitor: India’s Foreign Exchange Reserves Rise for Second Consecutive Week, Gold Holdings Increase

Mumbai: India’s foreign exchange reserves saw a notable increase for the second consecutive week, providing relief amid previous weeks of volatility. The rise, driven by both foreign currency assets (FCA) and gold, added $1.68 billion to the nation’s reserves in the week ending 12 December 2025.

Current Reserve Levels

According to data released by the Reserve Bank of India (RBI), India’s total forex reserves reached $688.949 billion, following a $1.689 billion increase during the week. The previous week also saw a rise of $1.033 billion. The record high of $704.885 billion was earlier touched during the week ending 27 September 2024.

Foreign Currency Assets (FCA) Growth

During the review week, FCAs increased by $906 million, rebounding from a $151 million decline the previous week. FCA now stands at $557.787 billion. FCAs, which include holdings in currencies such as the Euro, Pound, and Yen, are a critical component of India’s total foreign exchange reserves, reflecting the impact of global currency fluctuations.

Gold Reserves See Significant Uptick

India’s gold reserves also rose sharply, adding $758 million in value during the week, following a $1.188 billion increase in the prior week. Gold holdings are now valued at $107.741 billion, with total reserves exceeding 880 tons, accounting for over 14.7% of the country’s total forex reserves.

Special Drawing Rights (SDR) and IMF Reserves

The Special Drawing Rights (SDR) component of India’s reserves saw a modest increase of $14 million, following a $93 million rise the previous week, bringing the total to $18.735 billion. Meanwhile, India’s IMF reserve grew by $11 million, reaching $4.686 billion.

Investor Takeaway

The consecutive weekly increases in forex and gold reserves signal stronger financial stability and a positive buffer against global currency volatility. Rising reserves not only reflect robust external assets but also provide confidence for markets and policymakers in managing India’s foreign exchange exposure.