India's foreign exchange reserves declined by USD 711 million to USD 681.610 billion for the week ended June 6, 2026, according to data released by the Reserve Bank of India (RBI) on Friday. In the previous reporting week, the reserves had increased by USD 938 million to reach USD 682.321 billion.
Components of Reserves
The RBI data revealed that foreign currency assets (FCAs), a major component of the overall reserves, dropped by USD 1.102 billion to USD 599.331 billion. Expressed in dollar terms, FCAs include the effect of appreciation or depreciation of non-US units like the euro, pound, and yen held in the reserves.
Gold reserves rose by USD 332 million to USD 56.508 billion. Special Drawing Rights (SDRs) remained unchanged at USD 18.003 billion. The country's reserve position with the International Monetary Fund (IMF) also stayed flat at USD 4.309 billion.
Historical Context
India's forex reserves had touched a lifetime high of USD 704.885 billion in September 2021. Since then, the reserves have fluctuated due to various global and domestic factors, including monetary policy adjustments by central banks worldwide and geopolitical tensions.
The RBI closely monitors the reserves to manage exchange rate volatility and ensure external stability. The current level remains robust, providing a cushion against potential economic shocks.
