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India's Forex Reserves Drop for Fifth Week
23 Oct
Summary
- Forex reserves fell for the fifth consecutive week, now at $726 billion.
- Foreign currency assets and gold value drove the recent decline.
- Gold's share in reserves tripled, but shows sharp monthly swings.
India's foreign exchange reserves have experienced a notable decline, falling for the fifth consecutive week to $726 billion as of the week ending October 9. This decrease is largely attributed to a 1.18 per cent drop in foreign currency assets (FCAs) and a 1.24 per cent reduction in gold value.
These two components constitute the vast majority of India's forex reserves. Gold's significance has grown substantially, with its share nearly tripling from 6.67 per cent in 2019 to 17.1 per cent by August 2026. This surge is closely linked to a more than threefold increase in global gold prices since 2019, reaching $4,324.7 per troy ounce as of September 30, 2026. However, the value of gold reserves has shown considerable volatility, with sharper month-on-month fluctuations compared to FCAs.
