India's forex reserves down by USD 8.58 billion to USD 726.03 billion in week ended Oct 9

The foreign exchange reserves of the country declined by USD 8.578 billion to USD 726.027 billion in the week ended October 9, according to data released by the Reserve Bank of India (RBI) on Friday.

The foreign exchange reserves of the country declined by USD 8.578 billion to USD 726.027 billion in the week ended October 9, according to data released by the Reserve Bank of India (RBI) on Friday. The RBI data also highlighted that the foreign currency assets, the largest component of India's forex reserves, fell by USD 7.142 billion to USD 597.605 billion during the week.

The gold reserves of the central bank declined by USD 1.319 billion to USD 105.094 billion, while the country's special drawing rights (SDRs) with the International Monetary Fund (IMF) fell by USD 109 million to USD 18.548 billion. However, RBI data also pointed out that India's reserve position with the IMF increased by USD 10 million to USD 4.780 billion during the reporting week.

Despite the weekly decline, India's total foreign exchange reserves remained higher than their levels at the end of March 2026 and a year earlier. The RBI data showed that forex reserves increased by USD 34.920 billion compared with the end of March 2026. On a year-on-year basis, reserves were higher by USD 28.244 billion.

Foreign exchange reserves are held by the central bank and comprise foreign currency assets, gold, special drawing rights and the reserve position with the IMF. The RBI's latest figures also showed that foreign currency assets were USD 45.323 billion higher than their level at the end of March 2026, while gold reserves were USD 10.301 billion lower over the same period.

The foreign exchange reserves serve as a financial cushion to meet external payment obligations and help the country manage periods of pressure on its external sector. The reserves comprise foreign currency assets, gold, Special Drawing Rights (SDRs) and India's reserve position with the International Monetary Fund (IMF). Foreign currency assets form the largest component of the country's reserves. (ANI)