India's forex reserves increased by $2.362 billion to $703.308 billion in the week ended February 27, according to the latest data released by the Reserve Bank of India (RBI). The rise follows a $3.825 billion increase in the previous week, reflecting continued strengthening in the country’s external position.
Key Highlights
- India's forex reserves rise by $2.362 billion to $703.308 billion, marking continued weekly gains.
- Gold, FCAs, SDRs, and IMF reserves all increase; reserves remain below February 2026 record high.
Gold reserves, a key component of India's forex reserves, rose by $790 million to $122.133 billion during the reporting week. The steady increase highlights a broader global trend of central banks boosting gold holdings as a hedge against geopolitical and financial uncertainty.
Foreign currency assets (FCAs), which account for the largest share of the reserves, climbed by $1.481 billion to $557.463 billion. These assets reflect the valuation impact of currencies such as the euro, pound sterling, and yen held in the reserves.
Also Read: India's Forex Reserves Jump $9.06 Billion to $697.12 Billion
SDRs and IMF Position Edge Higher
- India’s Special Drawing Rights (SDRs) with the International Monetary Fund increased by $78 million to $18.841 billion.
- The country’s reserve position with the IMF rose by $14 million to $4.87 billion during the week.
India's forex reserves had touched an all-time high of $728.494 billion in the week ended February 27, 2026. However, reserves declined in subsequent weeks due to heightened geopolitical tensions in West Asia, which exerted pressure on the rupee and prompted RBI intervention through dollar sales in the currency market.
