Forex Reserves Touch New Record
India’s Forex Reserves Rise to Record $740.803 Billion: India’s foreign exchange reserves rose by $11.475 billion to a record $740.803 billion in the week ended August 28, 2026, according to data from the Reserve Bank of India.
This marked the ninth consecutive weekly increase in reserves. In the previous week ended August 21, the total had already reached a then-record $729.328 billion.
The sharp accumulation strengthened India’s external financial buffer and enhanced the RBI’s capacity to manage volatility in the foreign exchange market.
Foreign Currency Assets Lead Increase
Foreign Currency Assets (FCA), the largest component of India’s forex reserves, increased by $9.337 billion during the reporting week.
They stood at approximately $600.67 billion as of August 28.
FCA includes assets held in major international currencies such as the US dollar, euro, pound sterling and Japanese yen. Although India reports them in dollar terms, their value can also change because of movements in exchange rates.
Static GK fact: India’s foreign exchange reserves comprise Foreign Currency Assets, gold, Special Drawing Rights and the Reserve Tranche Position with the IMF.
Gold Reserves Also Rise
India’s gold reserves increased by around $2.191 billion during the week and reached approximately $116.409 billion.
Gold provides diversification within the reserve portfolio and can act as a financial buffer during periods of global uncertainty.
Changes in international gold prices can also influence the dollar value of India’s gold holdings.
SDRs and IMF Position Decline
Not every component increased during the week.
India’s Special Drawing Rights (SDRs) declined by about $43 million to $18.81 billion, while its Reserve Tranche Position with the IMF fell by around $11 million to approximately $4.914 billion.
Static GK Tip: Special Drawing Rights are international reserve assets created by the International Monetary Fund and allocated to member countries based broadly on their IMF quotas.
Special Measures Boost Dollar Inflows
The recent rise in reserves followed measures introduced by the RBI in June 2026 to attract foreign-currency inflows and strengthen the rupee.
These measures generated more than $136 billion in forex inflows, with the largest contribution coming from non-resident deposits.
The strong inflows enabled the RBI to rebuild reserves while retaining greater capacity to intervene when the rupee faced excessive volatility.
Why Large Forex Reserves Matter
Foreign exchange reserves help a country meet external payment obligations, finance imports and manage sudden capital outflows.
They also allow the central bank to intervene in the currency market by buying or selling foreign currency when necessary.
Large reserves therefore improve confidence in the economy’s ability to withstand external shocks, though the RBI does not target any fixed exchange rate for the rupee.
External Buffer Reaches Historic High
The August 28 record reflects the combined impact of strong dollar inflows, higher foreign currency assets and rising gold holdings.
For India, the $740.803 billion reserve level represents an important macroeconomic buffer at a time of continued global financial and currency-market uncertainty.
Static Usthadian Current Affairs Table
India’s Forex Reserves Rise to Record $740.803 Billion:
| Fact | Detail |
| Forex Reserves | $740.803 billion |
| Reporting Week Ended | August 28, 2026 |
| Weekly Increase | $11.475 billion |
| Previous Week’s Reserves | $729.328 billion |
| Foreign Currency Assets | $600.67 billion |
| FCA Weekly Increase | $9.337 billion |
| Gold Reserves | $116.409 billion |
| Gold Weekly Increase | $2.191 billion |
| Special Drawing Rights | $18.81 billion |
| IMF Reserve Tranche Position | $4.914 billion |
| Data Authority | Reserve Bank of India |
| Major Reserve Component | Foreign Currency Assets |
