India’s foreign exchange reserves saw a decline recently. The drop amounted to $5.623 billion in the week ending October 31. This brought the total reserves down to $689.733 billion.
Data from the Reserve Bank of India highlighted this decrease. It was driven by reductions in foreign currency assets and gold reserves. The central bank’s Weekly Statistical Supplement provided these insights.
Over the past month, the trend has mostly been downward. Only one week bucked this pattern. Despite this, the reserves are still close to their peak.
The all-time high of $704.89 billion was reached in September 2024. Current levels hover near this record. This shows the underlying strength of India’s financial buffers.
Foreign currency assets, the largest component, fell to $564.591 billion. That was a drop of $1.957 billion for the reported week. These assets play a crucial role in the overall reserves.
Gold reserves also decreased significantly. They stood at $101.726 billion, down $3.810 billion. The price of gold has been rising amid global uncertainties.
Investment demand for gold remains robust. This safe-haven asset attracts investors during volatile times. Its value impacts the reserve calculations directly.
RBI Governor Sanjay Malhotra recently commented on the reserves. He stated they cover over 11 months of merchandise imports. This assurance came after a monetary policy review.
The external sector continues to show resilience. The RBI expresses confidence in meeting obligations. This stability is key for economic planning.
In 2023, India added about $58 billion to its forex reserves. This contrasted sharply with the previous year’s decline of $71 billion. The reversal marked a positive shift.
By 2024, reserves had increased by just over $20 billion. The cumulative rise in 2025 so far is about $40 billion. These figures highlight a steady buildup.
Forex reserves are assets held by the central bank. They are mainly in reserve currencies like the US dollar. Smaller portions include the Euro, Yen, and Pound Sterling.
The RBI actively manages these reserves to stabilize the rupee. It buys dollars when the currency is strong. It sells during periods of weakness to prevent depreciation.
This strategic intervention supports the economy. It helps maintain balance in foreign exchange markets. The approach safeguards against external shocks.
Overall, the reserves position remains robust. Fluctuations are part of normal economic cycles. India’s forex management continues to inspire confidence.