India’s Forex Reserve Touches Record High Of $681 Billion

India’s foreign exchange reserves increased by USD 7.023 billion, reaching a fresh record high of USD 681.688 billion, during the week that ended on August 23, according to data released by the Reserve Bank of India.

The previous record high was USD 674.919 billion.

The reserves have been on an upward trend for some time. In 2024 alone, they have risen by approximately USD 60 billion cumulatively. This buffer of foreign exchange reserves helps insulate domestic economic activity from global shocks.

According to the latest data from the RBI, India’s foreign currency assets (FCA), the largest component of forex reserves, rose by USD 5.983 billion to USD 597.552 billion.

Gold reserves during the week increased by USD 893 million, bringing the total to USD 60.997 billion. As per estimates, India’s foreign exchange reserves are now sufficient to cover about a year of projected imports.