ndia’s foreign exchange reserves recorded a marginal increase of $1.03 billion to $687.26 billion in the week ended December 5, according to RBI’s latest Weekly Statistical Supplement. The rise was primarily supported by higher gold reserves, even as foreign currency assets declined slightly. The overall level of reserves remains close to the all-time high of $704.89 billion achieved in September 2024.
Gold Reserves Drive Weekly Increase
Gold reserves rose by $1.033 billion to $106.984 billion during the reported week. The increase reflects the recent uptrend in global gold prices, driven by heightened geopolitical uncertainties and strong investment demand for the safe-haven asset. The rise in gold holdings helped offset the modest fall in other components of the reserve basket.
Foreign Currency Assets See Marginal Dip
Foreign currency assets, which form the largest share of India’s forex reserves, stood at $556.88 billion. This represented a decline of about $151 million from the previous week. Despite short-term fluctuations, the RBI has maintained that the overall reserve position remains robust and adequate to manage external sector risks.
External Sector Strength and RBI Assessment
Following its latest monetary policy review, the RBI stated that India’s foreign exchange reserves are sufficient to cover more than 11 months of merchandise imports. The central bank has expressed confidence in the country’s ability to comfortably meet external financing requirements, highlighting resilience in the external sector amid global volatility.
Facts
- India’s forex reserves stood at $687.26 billion in the week ended December 5, 2025.
- Gold reserves increased to $106.984 billion, rising by over $1 billion in one week.
- Foreign currency assets form the largest component of India’s forex reserves.
- India’s highest-ever forex reserves were recorded at $704.89 billion in September 2024.
Trends in Reserves and Rupee Management
In recent years, India’s forex reserves have shown varied trends, rising by about $58 billion in 2023, increasing modestly in 2024, and expanding by nearly $47–48 billion so far in 2025. The RBI actively manages reserves by buying dollars when the rupee is strong and selling them during periods of weakness, as the currency has depreciated by over 5 per cent on a cumulative basis this year.