India’s forex reserves soar to record USD 728.49 billion on strong gold gains

India’s foreign exchange reserves climbed sharply by USD 4.885 billion during the week ended February 27, reaching an all‑time high of USD 728.494 billion , the Reserve Bank of India (RBI) said on Friday.

The latest rise follows a dip of USD 2.119 billion in the previous reporting week, when overall reserves had fallen to USD 723.608 billion. The earlier record was USD 725.727 billion, set for the week ended February 13.

According to RBI data, the key component of the reserves, foreign currency assets (FCA), increased by USD 561 million during the reporting week to stand at USD 573.125 billion . These assets are held in major global currencies such as the US dollar, euro, British pound and Japanese yen. The reported figures are expressed in US dollar terms after accounting for the impact of currency appreciation or depreciation.

A significant driver of the overall surge was the sharp uptick in the value of gold reserves , which rose by USD 4.141 billion to USD 131.630 billion . Gold continues to be a strategic part of the RBI’s reserve portfolio, offering stability amid global volatility.

Small increases were also recorded in India’s holdings of Special Drawing Rights (SDRs) with the International Monetary Fund (IMF), which rose by USD 26 million to USD 18.87 billion. Additionally, the country’s reserve position with the IMF improved by USD 158 million, taking it to USD 4.87 billion during the week.

The steady expansion in foreign exchange reserves reflects continued capital inflows and prudent reserve management by the RBI, bolstering India’s external stability and confidence in its financial buffers.