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India’s foreign exchange reserves rose by INR 39,557 crore (approximately $4.74 billion) in the week ending August 8, reaching a total of INR 57.84 lakh crore (about $693.62 billion), according to data released by the Reserve Bank of India (RBI). This rebound follows a sharp drop of INR 77,762 crore (~$9.32 billion) recorded just a week earlier.
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Valuation Gains Cushion Strategic Interventions
Economists attribute the surge partly to valuation gains of INR 81,830 crore ($9.8 billion), driven by rising gold prices and a softer U.S. dollar. These gains offset the RBI’s INR 41,750 crore ($5 billion) currency swap maturity and any spot market interventions undertaken to stabilise the rupee.
During the same week, as per Lokmat Times, foreign currency assets climbed by INR 23,717 crore ($2.84 billion) to INR 48.74 lakh crore ($583.98 billion), while gold reserves increased by INR 18,036 crore ($2.16 billion) to INR 7.19 lakh crore($86.16 billion). Special Drawing Rights (SDRs) and the reserves position with the IMF also saw small upticks.
Strong Buffers Amid External Pressures
RBI Governor Sanjay Malhotra noted that at current levels, India’s forex reserves can cover over 11 months of merchandise imports and nearly 96% of external debt obligations, reinforcing the country’s strong external financial position.
This recovery comes amid global volatility, where RBI interventions—particularly in currency markets—remain vital for protecting the rupee. The reserves’ rebound gives the central bank more room to shield the economy from sharp depreciation and external shocks.
