India’s foreign exchange reserves surged by $4.6 billion to reach a seven-month high of $690.61 billion for the week ending May 9, 2025, according to data released by the Reserve Bank of India (RBI) on Friday, May 16.
The increase marks a notable jump from the previous week’s level of $686 billion, reflecting strengthened foreign assets and overall currency stability.
The RBI data also highlighted a marginal rise in foreign currency assets, which stood at $581.37 billion as of May 9, up from $581.17 billion in the prior week. These assets form a major component of the total reserves and are impacted by the fluctuation in the value of non-U.S. currencies such as the euro, pound sterling, and Japanese yen when expressed in U.S. dollar terms.
India’s forex reserves include foreign currency assets, gold reserves, Special Drawing Rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF). The latest boost in reserves strengthens India’s ability to manage external shocks and enhances investor confidence in the country’s economic stability.
The current level marks the highest reserve figure since October 2024, indicating robust capital inflows and effective reserve management by the central bank.