India's forex reserves rise $4.6 billion, hit 7-month high at $690.6 billion: RBI

India's central bank, the Reserve Bank of India (RBI), data released on Friday, 16 May, showed that the nation's total foreign exchange (forex) reserves surged to reach a seven-month high of $690.61 billion as of 9 May, 2025.

The country's forex reserves witnessed a $4.6 billion hike when compared to the data released for the week ended 2 May, 2025. The total forex reserves were at $686 billion, according to the previous RBI data release. 

The central bank data also showed that India's foreign currency assets witnessed a marginal growth, currently at $581.37 billion, compared to the previous level of $581.17 billion levels.

The foreign exchange reserves in the RBI report are stated in US dollars; the foreign currency assets include the effect of appreciation or depreciation of non-US units like the pound, euro, and yen held in the foreign exchange reserves.

India's forex reserves hit their all-time high levels at $704.89 billion in September 2024, according to a PTI report. 

Gold Reserves

According to the latest RBI data release, India's gold reserves were at $86.33 billion as of 9 May 2025. This marks a $4.51 billion rise in the country's gold stockpile, when compared to the previous data release at $81.82 billion, previous data shows.

Central banks are increasing gold, a safe-haven asset needed in times of economic uncertainty or geopolitical tensions. India's current conflict with its archrival neighbour, Pakistan, along with the Trump tariff threat from the United States, has created uncertainty for the South Asian nation in recent times.

Apart from the gold reserves, there are two more aspects of holdings which contribute to the nation's foreign exchange kitty. Special Drawing Rights (SDRs) and the Reserve position in the International Monetary Fund (IMF) are the two additional holdings which the central banks keeps to contribute to the nation's forex reserves.

According to the RBI data release, the SDRs dropped $26 million to reach their current level of $18.532 billion as of 9 May 2025, compared to its previous levels of $18.558 billion.

India's reserve position with the International Monetary Fund (IMF) fell $135 million to reach its current level of $4.374 billion, compared to $4.509 billion in the previous data release.

RBI also uses its forex reserves to keep the volatility in the Indian currency (Indian Rupee) in check. Thus, an intervention from the central bank causes a change in foreign currency assets and the appreciation and depreciation of the foreign currencies held as reserves.

As of 18 May 2025, the Indian Rupee is standing at ₹85.60 against the US dollar, according to Morningstar data from 6:29 p.m. (UTC).