India’s foreign exchange reserves have shown a remarkable increase for the third consecutive week, reflecting positive momentum in the country’s economic outlook. According to the latest RBI data, forex reserves rose by $4.698 billion in the week ending September 12, 2025, bringing the total to $702.966 billion, just shy of the all-time high of $705 billion.
Key Contributors to the Rise
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Foreign Currency Assets (FCA): The largest component of India’s reserves increased by $2.537 billion, reaching $587.014 billion. FCA reflects fluctuations in major non-US currencies such as the euro, pound, and yen.
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Gold Reserves: Gold performed strongly, increasing by $2.12 billion to $92.419 billion, driven by rising global gold prices and the RBI’s strategy to strengthen its gold holdings.
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IMF Components:
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Special Drawing Rights (SDR) increased by $32 million to $18.773 billion.
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India’s reserve position with the IMF rose by $9 million to $4.76 billion.
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Last week, the reserves had also increased by $4.03 billion, reaching $698.26 billion, showing consistent growth in India’s forex position.
Positive Economic Implications
This steady rise in reserves strengthens India’s ability to manage external shocks, support the rupee, and meet international obligations, providing a boost to investor confidence.
Pakistan’s Forex Update
Meanwhile, Pakistan’s foreign exchange reserves also saw a marginal increase of $21 million, reaching $14.35 billion, according to the State Bank of Pakistan.
