Indian Masterminds Stories
New Delhi: India’s foreign exchange reserves continued their upward trajectory, rising by USD 1.689 billion to reach USD 688.949 billion for the week ended December 12, 2025, according to data released by the Reserve Bank of India (RBI) on Friday. This marks a second consecutive week of growth in the country’s forex reserves, reflecting continued stability in external financial inflows.
Foreign Currency Assets See Positive Growth
The data shows that India’s foreign currency assets (FCA), the largest component of the reserves, increased by USD 906 million to USD 557.787 billion during the reporting week. FCA includes the dollar value of assets held in foreign currencies such as the euro, pound, and yen, adjusted for the impact of fluctuations in exchange rates. These assets are critical for supporting India’s balance of payments and maintaining currency stability.
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Gold Reserves Strengthen Reserve Position
India’s gold reserves also witnessed a significant uptick, rising by USD 758 million to USD 107.741 billion. Gold continues to remain an important component of India’s reserve portfolio, acting as a hedge against global market volatility and currency fluctuations.
Special Drawing Rights and IMF Position on the Rise
The country’s Special Drawing Rights (SDRs) at the International Monetary Fund (IMF) increased marginally by USD 14 million to USD 18.745 billion. Additionally, India’s reserve position with the IMF rose by USD 11 million to USD 4.686 billion, reflecting steady improvements in the country’s overall external liquidity position.
Consistent Trend in Reserve Accumulation
In the previous reporting week, India’s overall forex reserves had grown by USD 1.033 billion to USD 687.26 billion. The continued rise in reserves underscores India’s ability to maintain strong external buffers amidst global economic uncertainties, providing confidence to investors and policymakers alike.
RBI’s Role in Strengthening Forex Reserves
The Reserve Bank of India plays a key role in managing the country’s reserves through strategic interventions in the forex market, portfolio diversification, and prudent monetary policy. The steady growth in reserves enhances India’s capacity to manage external shocks, stabilize the rupee, and support international trade.
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