India's Forex Reserves See Significant Decline
India's foreign exchange reserves witnessed a sharp decline of $9.98 billion, settling at $671.62 billion for the week ending June 13, 2026, according to the latest data released by the Reserve Bank of India (RBI). This marks a notable decrease from the previous week's figures.
Gold Reserves Also Drop
The value of gold reserves also took a hit, decreasing by $10.754 billion to reach $103.821 billion during the same period. The RBI attributed these changes to fluctuations in the global market and valuation adjustments.
The decline in forex reserves comes amid a strengthening US dollar and global economic uncertainties. Market analysts suggest that the RBI's intervention to stabilize the rupee may have contributed to the depletion of reserves.
Foreign currency assets (FCAs), the largest component of the forex reserves, also dipped. FCAs expressed in dollar terms include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the reserves.
The RBI data also highlighted changes in special drawing rights (SDRs) and the reserve position in the International Monetary Fund (IMF), though these components remained relatively stable.
India's forex reserves have been on a roller-coaster ride in recent months, influenced by global monetary policies and domestic economic conditions. The central bank continues to monitor the situation closely to ensure adequate cover for imports and external debt obligations.
Economists view the current level of reserves as comfortable, providing a cushion against external shocks. However, persistent declines could raise concerns about the country's balance of payments position.
