CHENNAI: 22/07/2025: A look at the American Doller…..Photo: SRINATH M/ THE HINDU | Photo credit: SRINATH M
India’s foreign exchange reserves rose by $4.49 billion week-on-week to $702.28 billion on October 17, mainly led by a sharp increase in gold reserves, according to data released by the Reserve Bank of India.
Foreign currency assets (FCA) – including investments in securities, deposits with other central banks and the BIS, and deposits with commercial banks abroad – amounted to $570.41 billion, down $1.69 billion from last week.
During the week ended October 17, the RBI bought gold to the tune of $6.18 billion, taking gold’s total share of foreign exchange reserves to $108.54 billion.
The RBI has quickly built up its gold reserves this year and cut investments in US bonds to diversify its reserves against the US dollar, analysts say. In fact, regulators in emerging markets, especially in Asia, are buying up and de-dollarizing gold as a result of a few countries’ increasing practice of freezing other countries’ overseas assets during geopolitical crises.
Special Drawing Rights (SDRs), which refer to India’s commitment to provide funds under the New Arrangements to Borrow (NAB) and International Monetary Fund (IMF) investments in SDR bonds issued by the IMF, stood at $18.72 billion, while the reserve tranche position in the IMF stood at $4.60 billion.
Published on October 24, 2025
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