Is India's Forex Reserves Surpassing $700 Billion Again?
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Synopsis
India's foreign exchange reserves have once again soared past the $700 billion mark, reaching an impressive $702.78 billion. This milestone, reported by the Reserve Bank of India, highlights the country's economic resilience and robust remittance inflows from expatriates, which have surged significantly.
Key Takeaways
- India’s forex reserves have reached $702.78 billion.
- Increase of $4.8 billion from previous week.
- First time in nine months above $700 billion.
- Gold reserves remain at $84.5 billion.
- Remittances rose by 14% to a record $135.46 billion.
Mumbai, July 4 (NationPress) India's foreign exchange reserves have surpassed the $700 billion threshold once again, reaching $702.78 billion for the week ending June 27, as reported by the Reserve Bank of India (RBI) on Friday.
This represents a notable increase of $4.8 billion from the previous week's total of $697.93 billion.
This achievement marks the first time in nine months that India's forex reserves have exceeded the $700 billion mark. The last peak occurred at $704.88 billion in late September 2024.
The recent uptick is primarily attributed to a significant increase in foreign currency assets, which rose by $5.75 billion to reach $594.82 billion.
Foreign currency assets constitute a considerable portion of the overall reserves and include the values of major currencies such as the euro, pound, and yen, all held by the RBI, adjusted for fluctuations against the US dollar.
In contrast, gold reserves remained steady at $84.5 billion during that week. The country’s special drawing rights (SDRs) — a type of international reserve established by the International Monetary Fund (IMF) — increased by $158 million to reach $18.83 billion.
The RBI actively oversees the foreign exchange market to ensure stability and mitigate extreme fluctuations in the value of the rupee.
While the RBI does not pursue a fixed exchange rate, it intervenes as necessary to manage excessive volatility.
This is usually achieved through liquidity management, including the sale of US dollars when needed.
Meanwhile, remittances sent back to India by expatriates have shown a remarkable 14% increase for the fiscal year 2024-25, totaling a record $135.46 billion, according to RBI data.
The RBI noted that these inflows, categorized as “private transfers,” accounted for more than 10% of India’s gross current account flows of $1 trillion in FY25.
Personal transfer receipts, largely comprised of remittances from Indians working abroad, rose to $33.9 billion in the January-March quarter of 2024-25 from $31.3 billion in the same period last year, as indicated by RBI data.
Point of View
India's ability to surpass the $700 billion mark in foreign exchange reserves showcases the resilience and strength of its economy. The Reserve Bank of India's proactive management of forex reserves reflects its commitment to maintaining stability in the financial landscape, while increasing remittances from abroad underscore the importance of overseas contributions to the national economy.
NationPress
20/07/2025
Frequently Asked Questions
What are India's current foreign exchange reserves?
As of June 27, India’s foreign exchange reserves stand at $702.78 billion.
Why have India's forex reserves increased recently?
The increase of $4.8 billion is primarily due to a rise in foreign currency assets, which grew by $5.75 billion.
What role does the RBI play in managing forex reserves?
The RBI actively manages the forex market to maintain stability and prevent excessive volatility in the rupee's value.
How much have remittances increased in FY 2024-25?
Remittances have surged by 14% to a record $135.46 billion in the financial year 2024-25.
What are special drawing rights (SDRs)?
SDRs are a form of international reserve created by the IMF, with India's SDRs rising to $18.83 billion.
