February 25, 2026 4:04 pm

India Forex Reserves Touch Historic 725.727 Billion Dollar Mark

CURRENT AFFAIRS: Forex Reserves, Reserve Bank of India, Foreign Currency Assets, Gold Reserves, Special Drawing Rights, External Sector Stability, Balance of Payments, Currency Management, IMF

India Forex Reserves Touch Historic 725.727 Billion Dollar Mark

Record High in External Buffers

India Forex Reserves Touch Historic 725.727 Billion Dollar Mark: India’s Forex Reserves reached an all-time high of $725.727 billion for the week ended February 13, 2026. The reserves increased by $8.663 billion in a single week, reflecting strong macroeconomic management.

Data released by the Reserve Bank of India (RBI) shows that the surge was driven primarily by gains in Foreign Currency Assets (FCA) and Gold Reserves. This milestone strengthens India’s external stability amid global financial volatility.

Static GK fact: The Reserve Bank of India was established in 1935 under the RBI Act, 1934, and nationalised in 1949.

Foreign Currency Assets Lead the Growth

Foreign Currency Assets (FCA) remain the largest component of India’s forex reserves. FCA stood at $573.603 billion, registering a weekly increase of $3.550 billion.

FCA includes holdings in major global currencies such as the US Dollar, Euro, Japanese Yen, and British Pound Sterling. Since these assets are expressed in dollar terms, exchange rate fluctuations can impact overall reserve levels even without new inflows.

The steady growth in FCA indicates improved liquidity management and stronger external buffers. It enhances India’s ability to manage currency volatility and capital flow pressures.

Static GK Tip: The US Dollar remains the world’s primary reserve currency due to the dominance of the US economy and global trade settlement patterns.

Gold Reserves Strengthen Stability

India’s Gold Reserves increased sharply by $4.990 billion, reaching $128.466 billion. Gold acts as a hedge against global economic uncertainty and inflationary pressures.

Higher gold holdings improve investor confidence and reduce dependence on foreign currency assets. In times of geopolitical or financial crisis, gold provides stability to national reserves.

Static GK fact: India is among the largest consumers of gold globally, and gold forms an important part of the RBI’s diversification strategy.

Role of Special Drawing Rights

India’s Special Drawing Rights (SDRs) rose by $0.103 billion to $18.924 billion. SDRs are international reserve assets created by the International Monetary Fund (IMF) to supplement member countries’ official reserves.

SDRs help countries manage Balance of Payments pressures and maintain liquidity during global disruptions. Though smaller compared to FCA and gold, SDRs enhance financial flexibility.

Static GK fact: The IMF was established in 1944 during the Bretton Woods Conference to promote global monetary cooperation.

Significance for Indian Economy

The record level of forex reserves reflects robust external sector performance and prudent policy measures by the RBI. High reserves strengthen India’s ability to meet import obligations, manage exchange rate volatility, and withstand external shocks.

It also boosts investor confidence and enhances sovereign credit perception. In an era of global uncertainty, strong forex reserves serve as a shield for economic resilience.

Static Usthadian Current Affairs Table

India Forex Reserves Touch Historic 725.727 Billion Dollar Mark:

Topic Detail
Total Forex Reserves $725.727 billion (Week ended February 13, 2026)
Weekly Increase $8.663 billion
Foreign Currency Assets $573.603 billion
Gold Reserves $128.466 billion
Special Drawing Rights $18.924 billion
Largest Component Foreign Currency Assets
Key Institution Reserve Bank of India
Global Body Linked to SDR International Monetary Fund
India Forex Reserves Touch Historic 725.727 Billion Dollar Mark
  1. India’s Forex Reserves reached $725.727 billion in February 2026.
  2. Reserves increased by $8.663 billion in one week.
  3. Data was released by the Reserve Bank of India.
  4. Foreign Currency Assets form largest reserve component.
  5. FCA stood at $573.603 billion.
  6. Gold reserves rose to $128.466 billion.
  7. Special Drawing Rights (SDRs) reached $18.924 billion.
  8. RBI was established in 1935 under RBI Act, 1934.
  9. Higher reserves strengthen external sector stability.
  10. Forex buffers help manage exchange rate volatility.
  11. Gold acts as hedge against global uncertainty.
  12. SDRs are issued by the International Monetary Fund.
  13. IMF was established during Bretton Woods Conference 1944.
  14. Strong reserves boost sovereign credit perception.
  15. FCA includes US Dollar, Euro, Yen and Pound.
  16. Exchange rate fluctuations impact overall reserve valuation.
  17. High reserves support balance of payments management.
  18. Rising gold holdings reflect diversification strategy of RBI.
  19. Forex accumulation indicates prudent macroeconomic management.
  20. Record reserves enhance India’s resilience against global shocks.

Q1. India’s forex reserves reached an all-time high of how much in February 2026?


Q2. Which institution releases India’s forex reserve data?


Q3. What is the largest component of India’s forex reserves?


Q4. Special Drawing Rights are created by which institution?


Q5. Gold reserves in forex management primarily act as what?


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