Archive · 2 Sep 2026
India’s Forex Diversification Should Outlast Short-Term Dollar Pressures
India keeps money in different currencies as part of its foreign-exchange reserves.
An IMF paper in 2022 said India was moving some reserves into less traditional currencies.
These currencies made up 10% of India’s reserves.
Germany and Switzerland had the same share.
Indonesia, South Africa and France had higher shares.
India’s total foreign-exchange reserves were recently reported at $729 billion.
The article says short-term changes in the dollar should not distract India from diversifying.
Diversification means spreading reserves across different currencies rather than relying too heavily on one.
An IMF paper published in 2022 identified India as diversifying its foreign-exchange reserves.
India held 10% of its reserves in non-traditional currencies, according to the paper.
That 10% share matched the levels reported for Germany and Switzerland.
India’s share was below those of Indonesia, South Africa and France.
India’s foreign-exchange reserves stood at $729 billion in the latest count cited.
- Who
- India and the International Monetary Fund are discussed.
- What
- India is diversifying its foreign-exchange reserves into non-traditional currencies.
- When
- The IMF paper cited was published in 2022; the latest reserve count is not dated in the article.
- Where
- India’s foreign-exchange reserves are discussed, with comparisons to Germany, Switzerland, Indonesia, South Africa and France.
- Why
- The article argues that short-term dollar pressures should not distract India from diversifying its reserves.
- IMF paper
- Published in 2022
- India’s non-traditional currency share
- 10% of foreign-exchange reserves
- Comparable share
- Germany and Switzerland were also at 10%
- Countries with higher shares
- Indonesia, South Africa and France
- India’s foreign-exchange reserves
- $729 billion in the latest count cited