Finance1 min read

India's forex kitty shrinks by $1.27 billion as gold reserves slide

By · Via Times of India · Published by Everything Blog

In short

The Reserve Bank of India reported that the overall reserve stockpile fell to $719.748 billion due to a steep reduction in gold assets. Gains in foreign currency holdings and a $27 million increase in Special Drawing Rights failed to fully counteract the contraction. Meanwhile, domestic monetary metrics strengthened noticeably, with broad money supply and bank deposits accelerating compared to their pace a year earlier.

Key points

  • Total foreign reserves remain up by $28.640 billion compared to the end of March 2026.: Total foreign reserves remain up by $28.640 billion compared to the end of March 2026.
  • The country's reserve position in the International Monetary Fund experienced a modest $4…: The country's reserve position in the International Monetary Fund experienced a modest $4 million decline.
  • Aggregate bank deposits demonstrated accelerated growth, rising 16.7 percent year-on-year…: Aggregate bank deposits demonstrated accelerated growth, rising 16.7 percent year-on-year to Rs 278.76 lakh crore.

Sources checked by our analysis pipeline: 1

NEW DELHI: India's foreign exchange reserves fell by $1.269 billion to $719.748 billion in the week ended October 23. The decline was primarily driven by a fall in the value of gold holdings, according to the latest data released by the

Reserve Bank of India (RBI) on Friday.

The RBI's weekly statistical supplement showed that the value of gold reserves dropped by $2.650 billion during the week to $103.150 billion.

This came even as foreign currency assets, the biggest component of the country's foreign exchange reserves, registered an increase of $1.358 billion to reach $593.205 billion.

Other components of the forex reserves also recorded mixed movements during the week. India's Special Drawing Rights (SDRs) increased by $27 million to $18.605 billion, while its reserve position in the International Monetary Fund (IMF) declined by $4 million to $4.787 billion.

Despite the weekly contraction, the country's foreign exchange reserves were $28.640 billion higher than the level recorded at the end of March 2026, according to the RBI figures.

The RBI's latest weekly data also showed an acceleration in bank credit growth. Outstanding…

Finance

More in Finance