India"s foreign exchange reserves refer to assets held by the Reserve Bank of India (RBI) in foreign currencies. These reserves act as a cushion and provide liquidity, ensuring our country can meet its external obligations. The importance of Indian forex reserves cannot be overstated, as they play a vital role in maintaining the stability of the nation’s currency and economy. Wondering how it works? This article should help.
The Indian forex reserves have seen significant fluctuations, reflecting the country"s economic dynamics and global financial conditions.
India’s foreign exchange reserves are a topic of interest for economists and policymakers alike. With fluctuations and trends reflecting the nation"s economic landscape, understanding the forex reserves of India is essential.
As of May 16, 2025, India"s forex reserves stood at $6,90,617 million, according to the Reserve Bank of India.
The Indian forex reserves consist of foreign currency assets, gold, special drawing rights, and the International Monetary Fund (IMF) reserve position. As per the latest data from the RBI, here are the exact amount of Indian forex reserves held by different components:
| Component | Amount (in million USD) |
|---|---|
| Total Reserves | 6,90,617 |
| Foreign Currency Assets | 5,81,373 |
| Gold Reserves | 86,337 |
| Special Drawing Rights (SDR) | 18,532 |
| Reserve Position in IMF | 4,374 |
Over the years, India"s forex reserves have been driven by various factors, including a surge in foreign direct investments, growth in IT and service exports, and prudent economic policies. The Indian government and Reserve Bank of India utilise reserves to manage exchange rates and monetary policies effectively.
According to the RBI, the Indian forex reserves in the past five years amounted to these numbers:
| Year | Forex Reserves (in million USD) |
|---|---|
| May 16, 2025 | 6,90,617 |
| November 22, 2024 | 6,56,582 |
| May 3, 2024 | 6,41,590 |
| January 26, 2024 | 6,16,733 |
| December 31, 2023 | 6,204,41 |
| September 29, 2023 | 5,869,08 |
| December 23, 2022 | 5,62,808 |
| December 31, 2021 | 6,35,080 |
| December 25, 2020 | 5,81,131 |
| December 20, 2019 | 4,54,948 |
The components of Indian forex reserves are vital to the nation"s financial stability and economic growth. These components are carefully managed to ensure a balanced portfolio responding to various economic scenarios. The main elements of forex reserves in India include foreign currencies, gold reserves, special drawing rights, and the reserve portion in IMF.
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First Published: May 21, 2025, 09:30
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