India’s Forex Reserves Rise $1.7 Billion to $689 Billion, Gold Holdings Up $758 Million

India’s Forex Reserves Rise $1.7 Billion to $689 Billion; Gold Holdings Up $758 Million

India’s foreign exchange reserves rose by $1.689 billion to $688.949 billion in the week ended December 12, according to the latest RBI data. Gold reserves increased by $758 million to $107.741 billion during the same period.

Foreign currency assets, the largest component of the reserves, grew by $906 million to $557.787 billion, reflecting currency fluctuations in the euro, pound, and yen. Special Drawing Rights (SDRs) rose by $14 million to $18.745 billion, while India’s IMF reserve position increased by $11 million to $4.686 billion.

The RBI has said that the country’s forex reserves are sufficient to cover over 11 months of merchandise imports, highlighting India’s strong external sector. So far in 2025, reserves have grown by roughly $47–48 billion, continuing the positive trend after net additions of $58 billion in 2023 and $20 billion in 2024.

Amid global uncertainties, the price of gold has trended sharply higher, contributing to the increase in reserves. The RBI manages the rupee by strategically buying or selling dollars to prevent excessive depreciation, with the Indian rupee having weakened by nearly 6% cumulatively this year.