India's forex reserves surge $9.9 billion to $716.9 billion in week to Aug 14
Synopsis
India's forex reserves have now crossed $716.9 billion after two consecutive weeks of sharp gains totalling over $24 billion. The latest surge, partly fuelled by FCNR(B) deposit inflows, signals strong external sector confidence — and hands the RBI significant firepower to defend the rupee if global conditions turn turbulent.
Key Takeaways
India's forex reserves rose $9.905 billion to $716.90 billion in the week ended 14 August 2025 .
Foreign Currency Assets (FCAs) increased by $7.2 billion to $581.85 billion , the largest contributor to the weekly gain.
Gold reserves climbed $2.67 billion to $111.41 billion during the same week.
The rise was partly driven by inflows under the RBI's FCNR(B) deposit scheme .
The previous week saw an even larger jump of $14.136 billion , pushing reserves past $707 billion — the highest in the current financial year at that point.
Combined two-week accretion now exceeds $24 billion , reinforcing India's external sector resilience.
India's foreign exchange reserves climbed $9.905 billion to a fresh high of $716.90 billion during the week ended 14 August 2025, according to data released by the Reserve Bank of India (RBI) on Friday, 21 August. The back-to-back weekly gains underscore a sustained strengthening of India's external sector buffers.
Key Drivers of the Surge
Foreign Currency Assets (FCAs), the largest component of the reserves basket, rose by $7.2 billion to $581.85 billion during the week, accounting for the bulk of the overall increase. The RBI attributed part of the rise to inflows under its FCNR(B) deposit scheme, which began reflecting in the reserve figures during this reporting period.
Gold reserves also recorded a substantial gain, rising by $2.67 billion to reach $111.41 billion — a level that reflects both fresh accumulation and mark-to-market appreciation in international bullion prices.
Back-to-Back Weekly Gains
The latest increase follows an even sharper jump in the preceding week, when reserves surged by $14.136 billion during the week ended 7 August, crossing the $707 billion mark — their highest level in the current financial year at that point. That week's rise was led by FCAs climbing $9.946 billion to $574.625 billion, while gold reserves added $3.995 billion to reach $108.738 billion. The value of Special Drawing Rights (SDRs) held with the International Monetary Fund (IMF) also rose by $79 million to $18.745 billion that week.
In rupee terms, the country's reserves expanded by ₹1.19 lakh crore during that prior reporting week to ₹67.32 lakh crore, according to central bank data.
What This Means for India's Economy
Robust forex reserves serve as a critical shock absorber for an emerging market economy. At $716.90 billion, India's reserves are sufficient to cover roughly 11-12 months of projected imports — well above the conventional adequacy threshold of three months. This cushion gives the RBI greater flexibility to intervene in currency markets and manage rupee volatility without depleting reserves to critical levels.
Notably, the twin engines of this surge — FCNR(B) inflows and gold appreciation — suggest that both domestic confidence in India-linked instruments and global safe-haven demand are working in India's favour simultaneously.
Outlook
Analysts will watch whether the FCNR(B)-driven inflows sustain in coming weeks, given that such deposit schemes tend to generate front-loaded accretion. The RBI's next weekly data release will indicate whether the $716.90 billion level holds or extends further. Any reversal in global risk sentiment or a sharp dollar strengthening could moderate the pace of reserve accumulation going forward.
Point of View
But the composition matters as much as the quantum. FCNR(B) inflows are term-deposit driven and will eventually mature, meaning the accretion is partly borrowed time. Gold's contribution — over $2.6 billion this week alone — reflects mark-to-market gains rather than fresh accumulation, which can reverse if bullion prices correct. The real test of India's external resilience is whether underlying current account dynamics and FII equity flows hold steady through the global uncertainty ahead, not just whether the reserve headline keeps climbing.
NationPress
21 Aug 2026
Frequently Asked Questions
What are India's current foreign exchange reserves?
India's foreign exchange reserves stood at $716.90 billion as of the week ended 14 August 2025 , according to RBI data released on 21 August. This follows a surge of $9.905 billion in that single week.
What drove the increase in India's forex reserves this week?
The rise was primarily driven by a $7.2 billion increase in Foreign Currency Assets (FCAs) to $581.85 billion, supported by inflows under the RBI's FCNR(B) deposit scheme. Gold reserves also contributed, rising $2.67 billion to $111.41 billion.
What is the FCNR(B) deposit scheme and why does it matter?
The FCNR(B) — Foreign Currency Non-Resident (Bank) — scheme allows non-resident Indians to hold fixed deposits in foreign currency with Indian banks. Inflows under this scheme are counted in India's forex reserves and can significantly boost reserve levels, though they are repayable at maturity.
How does India's $716.9 billion in reserves compare to recent levels?
The $716.90 billion figure is the highest on record for India in the current financial year, surpassing the $707 billion mark set just the previous week. The two-week combined gain exceeds $24 billion.
Why do high forex reserves matter for India?
Large forex reserves give the RBI the capacity to intervene in currency markets to stabilise the rupee, absorb external shocks, and maintain investor confidence. At current levels, India's reserves cover roughly 11-12 months of projected imports, well above the internationally recommended minimum of three months.
