India Forex Reserves Hit Record $729.3 Billion
India’s foreign exchange reserves reached a record $729.328 billion in the week ended Aug. 21, rising $12.422 billion from the previous week, according to data released by the Reserve Bank of India on Aug. 28. The increase marked the eighth consecutive weekly rise and pushed reserves above the previous record of $728.494 billion reached in the week ended Feb. 27.
The latest increase coincided with a sharp rise in foreign-currency mobilization under the RBI’s special swap facilities. The Reserve Bank said the schemes had attracted $72.85 billion by Aug. 21, including $65.40 billion through FCNR(B) deposits, according to a government release.
RBI Swap Scheme Drives Foreign-Currency Inflows
The RBI introduced a U.S. dollar-rupee swap facility on June 8 for fresh FCNR(B) deposits with maturities of three to five years, while separate concessional swap arrangements covered eligible external commercial borrowings and overseas foreign-currency borrowings. The central bank said the measures were designed to attract foreign-currency inflows and strengthen the external position.
The scale of mobilisation accelerated sharply in August. The government said total foreign-currency inflows under the schemes reached $73 billion by Aug. 21, compared with about $26 billion raised under the RBI’s 2013 FCNR(B) swap program.
RBI Governor Sanjay Malhotra had described the response as strong before the latest reserve data were released, saying, “We have got robust flows.” The governor made the remark on Aug. 5 while discussing the FCNR(B) facility, according to the Indian Express.
Foreign-Currency Assets and Gold Lift Reserves
Foreign-currency assets, the largest component of India’s reserves, increased $9.482 billion during the week to $591.333 billion, according to RBI data. The central bank’s figures also show that gold reserves rose $2.801 billion to $114.218 billion.
Special Drawing Rights increased by $112 million to $18.852 billion, while India’s reserve position with the International Monetary Fund rose $26 million to $4.925 billion, the RBI reported. Together, those components brought total reserves to $729.328 billion.
The composition of the weekly increase also shows that the record was not generated solely by new dollar mobilization. The RBI’s reserve data show simultaneous increases in foreign-currency assets and the dollar value of gold holdings, with the two components accounting for $12.283 billion of the $12.422 billion weekly increase.
Record Reserves Strengthen India’s External Buffer
India’s reserve stock was $38.221 billion above its end-March 2026 level and $38.608 billion above the level a year earlier, according to RBI data reported from the central bank’s weekly release. The increase provides a larger pool of foreign assets against external financing and currency-market pressures.
The record also comes after reserves had fallen from their February peak during the subsequent period of geopolitical stress. Business Standard reported that the RBI had intervened through dollar sales as the rupee came under pressure, while the latest data show the reserve stock has since recovered beyond its previous record.
For India’s external sector, the latest figure provides a stronger reserve cushion while the RBI‘s special mobilization program approaches its scheduled closing date. The central bank said FCNR(B) deposits could be mobilized only until Aug. 31, while swaps against those deposits could be availed of through Sept. 11; the separate ECB and OFCB facility remains available through Dec. 31.
