MUMBAI– India’s foreign exchange reserves stood at $699.96 billion for the week ended October 3, according to data released Friday by the Reserve Bank of India (RBI). While the total slightly declined from $700.24 billion in the previous week, the gold component of the reserves saw a sharp rise, reflecting the central bank’s continued focus on diversification and stability.
Foreign currency assets, which make up the largest share of the reserves, totaled $577.71 billion. These assets include the impact of currency movements in non-U.S. holdings such as the euro, pound, and yen.
Gold reserves climbed by more than $3.75 billion to reach $98.77 billion during the week, as central banks globally continue to increase their gold holdings amid ongoing geopolitical and economic uncertainty. The RBI has added about 75 tonnes of gold since 2024, bringing its total holdings to 880 tonnes—now accounting for roughly 14 percent of India’s total reserves, according to a Morgan Stanley report.
The special drawing rights (SDR) component rose modestly to $18.81 billion, up $25 million from the previous week.
Analysts noted that India’s robust forex position gives the RBI significant room to stabilize the rupee against the U.S. dollar by intervening in spot and forward markets when necessary. The current reserves are sufficient to cover more than 11 months of goods imports and nearly 96 percent of the country’s external debt, RBI Governor Sanjay Malhotra recently stated.
Meanwhile, the RBI announced a relaxation of foreign exchange management norms to support exporters and enhance liquidity in the International Financial Services Centre (IFSC). The central bank extended the repatriation period for export proceeds from one month to three months for foreign currency accounts maintained within the IFSC.
The measure, expected to be formally notified soon, aims to encourage exporters to utilize IFSC Banking Units and boost forex liquidity domestically. Earlier this year, the RBI had already permitted exporters to open foreign currency accounts abroad, with the requirement that funds be used for import payments or repatriated by the end of the following month. (Source: IANS)
