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India’s Forex Reserves Rise $12.4 Billion to $729.3 Billion
India’s foreign exchange reserves rise by $12.4 billion to a record $729.3 billion in the week ended August 21, 2026. The Reserve Bank of India holds forex reserves as external assets to meet international payment requirements and maintain confidence in the Indian economy.
India’s Foreign Exchange Reserves:
| Dimension | Key Details |
|---|---|
| Functions | Forex reserves provide for meeting international payment requirements and maintaining confidence in the Indian economy. |
| Major components | Forex reserves comprise Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs), and Reserve Tranche Position (RTP) in the IMF. |
| RBI concessional swap window | The RBI’s concessional swap window has been announced on June 5, and it mobilises $72.8 billion by August 21. |
| Contribution of swap window | The swap window contributes to a $62.4 billion increase in reserves by August 21. |
| Capital inflows channel | The swap facility attracts significant foreign capital, thereby enhancing external liquidity and increasing reserves. |
| Revaluation gains | The appreciation of non-US currencies, such as the euro, pound, and yen, leads to an increase in the dollar value of reserves. |
| Foreign Currency Assets | Foreign Currency Assets increase by $9.48 billion to $591.33 billion. |