Archive · 12 Sep 2026
India’s Forex Reserves Surge $44.9 Billion to Record High
India keeps foreign money and gold as a financial safety cushion.
That cushion grew by almost $45 billion in one week.
It reached a record $785.706 billion by September 4.
Most of the increase came from foreign currency assets.
The value of India’s gold reserves fell during the same week.
Special drawing rights also declined slightly, while India’s position with the IMF rose a little.
The Reserve Bank of India attracted more than $136 billion through special currency-swap facilities.
These inflows also put more rupees into the banking system.
The RBI therefore used operations to absorb some of that extra money.
India’s foreign exchange reserves rose by a record $44.903 billion to $785.706 billion in the week ended September 4.
Foreign currency assets increased by $47.498 billion to $648.168 billion, driving the overall gain.
Gold reserves fell by $2.594 billion to $113.816 billion, partly offsetting the increase.
Concessional forex swap facilities launched by the Reserve Bank of India mobilised more than $136 billion in foreign currency flows.
The inflows strengthened reserves but added rupee liquidity, requiring the RBI to use operations such as variable-rate reverse repos.
- Who
- India and the Reserve Bank of India.
- What
- India’s foreign exchange reserves increased by $44.903 billion to a record $785.706 billion.
- When
- During the week ended September 4; the data was reported on September 11.
- Where
- India; the report was datelined Mumbai.
- Why
- Concessional dollar-rupee swap facilities helped attract more than $136 billion in foreign currency inflows after reserves had declined amid West Asia-related market pressure and rupee weakness.
Benefits of the Inflows
Costs and Management Challenges
Reserve strength
Benefits of the Inflows
The record accumulation substantially strengthened India’s headline foreign-exchange buffer after an earlier period of decline.
Costs and Management Challenges
The reserve increase partly reflects inflows attracted through special swap facilities and does not eliminate the need to manage external-market pressures.
Domestic liquidity
Benefits of the Inflows
The foreign-currency inflows helped rebuild reserves and supported the rupee after earlier weakness.
Costs and Management Challenges
Swapping the dollars with the RBI injected significant rupee liquidity into the banking system, requiring liquidity-absorption operations such as variable-rate reverse repos.
Policy response
Benefits of the Inflows
The concessional swap initiatives attracted more than $136 billion, with FCNR(B) deposits accounting for most of the inflows.
Costs and Management Challenges
The strong response led the RBI to close the FCNR(B) window early on August 31, while other eligible borrowing-related swap facilities remained available until the end of December.
- Total reserves
- $785.706 billion
- Weekly increase
- $44.903 billion, the largest weekly addition on record
- Previous week’s reserves
- $740.803 billion
- Foreign currency assets
- $648.168 billion, up $47.498 billion
- Gold reserves
- $113.816 billion, down $2.594 billion
- Special drawing rights
- $18.806 billion, down $4 million
- IMF reserve position
- $4.916 billion, up $2 million
- Swap-facility inflows
- More than $136 billion mobilised by the end of August
