Archive · 11 Sep 2026
India’s Forex Reserves Reach Record After RBI-Driven Dollar Inflows
India keeps money from other countries in its foreign exchange reserves.
These reserves reached a record $785.7 billion by the week ending September 4.
They have increased for 10 weeks in a row.
The Reserve Bank of India introduced measures to encourage more dollars and other foreign currencies to enter the country.
These measures brought in $136.3 billion between June 5 and August 31.
Deposits from Indians living abroad made up most of that amount.
The value of foreign currency assets rose sharply, but the value of gold holdings declined.
Analysts said some inflows may create future obligations for the central bank.
India’s foreign exchange reserves reached a record $785.7 billion in the week ended September 4.
Reserves have risen for 10 consecutive weeks, increasing by nearly $120 billion overall.
The latest weekly increase was almost $45 billion, among the sharpest rises in recent times.
Reserve Bank of India measures generated $136.3 billion in foreign currency inflows between June 5 and August 31.
Foreign currency assets rose $47.4 billion, while gold holdings fell about $2.6 billion to $113.8 billion.
- Who
- The Reserve Bank of India, banks, state-run companies, overseas Indians, bankers, and analysts are involved.
- What
- India’s foreign exchange reserves rose to a record $785.7 billion after substantial foreign currency inflows.
- When
- The record was reported for the week ended September 4; the RBI measures generated inflows between June 5 and August 31.
- Where
- India and its foreign exchange market.
- Why
- The increase followed RBI measures designed to attract foreign currency inflows and strengthen India’s external position.
Reserve Strength Benefits
Future Liability Concerns
Impact of foreign currency inflows
Reserve Strength Benefits
The inflows increased India’s headline foreign exchange reserves and supported the country’s external position.
Future Liability Concerns
Analysts said the inflows can create future liabilities through the Reserve Bank of India’s forward book.
Effect of market intervention
Reserve Strength Benefits
Bankers said the Reserve Bank of India’s foreign exchange interventions supported the rupee while reserves still increased substantially.
Future Liability Concerns
Those interventions may have absorbed some of the additional dollar inflows, meaning the headline reserve increase does not represent all incoming dollars.
- Record reserves
- $785.7 billion in the week ended September 4
- Consecutive increases
- Reserves rose for 10 straight weeks
- Total increase
- Nearly $120 billion over the 10-week period
- RBI-generated inflows
- $136.3 billion received between June 5 and August 31
- NRI deposits
- Around $127 billion, accounting for most of the inflows
- Foreign currency assets
- Rose by $47.4 billion during the latest week
- Gold holdings
- Declined by about $2.6 billion to $113.8 billion