FILE PHOTO: India’s foreign exchange reserves declined by $14.88 billion to $765.90 billion in the week ended September 18, mainly due to a fall in foreign currency assets.
| Photo Credit:
LEE JAE WON
India’s foreign exchange reserves declined by USD 14.88 billion to USD 765.90 billion in the week ended September 18, according to the latest data released by the Reserve Bank of India (RBI) on Friday.
The country’s forex reserves stood at USD 780.78 billion in the previous week ended September 11.
Foreign currency assets drive decline
According to the RBI’s Weekly Statistical Supplement, the decline was mainly driven by a fall in foreign currency assets, the largest component of India’s foreign exchange reserves.
Foreign currency assets fell by USD 14.82 billion to USD 630.98 billion during the week.
The value of gold reserves, however, increased by USD 68 million to USD 111.29 billion, providing a marginal offset to the overall decline in reserves.
Special Drawing Rights (SDRs) declined by USD 106 million to USD 18.74 billion, while India’s reserve position in the International Monetary Fund (IMF) decreased by USD 27 million to USD 4.89 billion.
Reserves remain higher than March 2026
Despite the sharp weekly decline, India’s foreign exchange reserves remained USD 74.79 billion higher than their level at the end of March 2026, according to the RBI data.
The country’s forex reserves were also USD 63.33 billion higher compared with the corresponding period a year earlier.
Role of forex reserves
Foreign exchange reserves are assets held by the RBI in foreign currencies, gold, SDRs and India’s reserve position in the IMF. These reserves help the country meet its external payment obligations and provide a buffer against volatility in global financial markets.
The RBI’s latest data showed that the fall in foreign currency assets accounted for almost the entire decline in India’s total foreign exchange reserves during the week ended September 18.
Published on September 25, 2026
