Mumbai: India’s foreign exchange reserves recorded a sharp increase of $10.512 billion, rising to $692.866 billion for the week ended July 31, according to the latest data released by the Reserve Bank of India (RBI).
The latest gain extends the country’s recent upward trend, following an increase of $6.118 billion in the previous week, bringing India’s forex reserves within striking distance of the $700 billion milestone.
The RBI data showed that foreign currency assets (FCAs)—the largest component of the reserves—rose by $8.750 billion to $564.680 billion during the week. Gold reserves also strengthened, climbing $1.685 billion to $104.743 billion.
The value of foreign currency assets reflects fluctuations in major global currencies such as the euro, pound sterling and Japanese yen against the US dollar, as these currencies form part of India’s reserve holdings.
Meanwhile, the country’s Special Drawing Rights (SDRs) with the International Monetary Fund increased by $48 million to $18.666 billion during the reporting week.
The RBI’s weekly statistical data indicates that India’s foreign exchange reserves continue to recover after witnessing some pressure earlier this year amid heightened global economic uncertainty. The reserves had touched a record high of $728.494 billion during the week ended February 27.
Earlier this week, RBI Governor Sanjay Malhotra clarified that there is no proposal to end the Foreign Currency Non-Resident (Bank) [FCNR(B)] deposit incentive scheme ahead of schedule.
The scheme has attracted strong overseas deposits, with Indian banks mobilising $36.7 billion through FCNR(B) accounts as of July 31, 2026. These inflows have helped support the rupee against the US dollar during a period of rising global crude oil prices.
With robust FCNR(B) inflows continuing, India’s foreign exchange reserves are expected to cross the $700 billion mark in the coming weeks. The RBI’s concessional zero-cost swap facility for banks remains in place and is scheduled to continue until September 30, 2026.
With inputs from IANS