India's foreign exchange reserves jump US$ 5.54 billion to US$ 692.57 billion
- IBEF
- November 24, 2025
India's foreign exchange reserves surged by Rs. 49,395 crore (US$ 5.54 billion) to reach Rs. 61,74,954 crore (US$ 692.57 billion) during the week ended November 14, 2025, as disclosed by the Reserve Bank of India (RBI) in its weekly statistical supplement released on November 21, 2025. This substantial increase effectively reversed the preceding week's decline of Rs. 24,073 crore (US$ 2.70 billion), when reserves had dipped to Rs. 61,25,559 crore (US$ 687.03 billion). The pronounced upswing was predominantly driven by an exceptional rise in the valuation of gold reserves, which constitute a strategically important component of the nation's external sector arsenal. Market analysts note that this appreciation reflects both elevated global gold prices and potential tactical acquisitions by the central bank, reinforcing India's financial resilience amid volatile global economic conditions. The timing of this accumulation suggests proactive reserve management aligned with broader macroeconomic stability objectives.
The detailed breakdown indicates that foreign currency assets, which represent the predominant share of reserves, increased modestly by Rs. 1,355 crore (US$ 152 million) to Rs. 50,13,378 crore (US$ 562.29 billion). These assets, expressed in US dollar equivalents, automatically capture the impact of currency movements in non-US holdings, including the euro, British pound sterling, and Japanese yen. Simultaneously, the gold reserves component experienced a dramatic jump of Rs. 47,522 crore (US$ 5.33 billion) to Rs. 9,52,764 crore (US$ 106.86 billion), highlighting its growing role as a hedge against currency fluctuations. Additionally, the Special Drawing Rights (SDRs) allocation with the International Monetary Fund (IMF) expanded by Rs. 499 crore (US$ 56 million) to Rs. 1,66,283 crore (US$ 18.65 billion), while India's reserve position with the IMF rose by Rs. 71 crore (US$ 8 million) to Rs. 42,618 crore (US$ 4.78 billion). This multi-asset composition exemplifies the RBI's prudent diversification strategy, balancing liquidity, safety, and return considerations to safeguard the economy against external shocks while supporting the nation's sovereign credit profile.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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