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India's Forex Reserves Dip Significantly
13 Feb
Summary
- India's foreign exchange reserves decreased to $717.6 billion.
- Gold holdings dropped by $14.2 billion in the reporting week.
- The Reserve Bank of India is confident in managing external financing needs.
India's foreign exchange reserves experienced a notable decrease, reaching $717.6 billion as of February 6, 2026. This represents a drop of $6.71 billion from previous levels.
Earlier in January, the reserves had climbed to $723.8 billion, providing a robust buffer against external economic shocks and ensuring over 11 months of import cover. The Reserve Bank of India's Governor, Sanjay Malhotra, stated last Friday that the bank is well-equipped to manage India's external financing requirements in the current global climate.
Data from the Reserve Bank of India revealed that foreign currency assets, the largest component of reserves, declined by $7.66 billion to $570.05 billion. These assets are influenced by fluctuations in the US dollar and other major currencies like the euro, pound sterling, and Japanese yen.
Further contributing to the dip, gold holdings saw a sharp decrease of $14.2 billion, now standing at $123.47 billion. Special Drawing Rights (SDRs) also decreased by $132 million to $18.82 billion, and India's reserve tranche position with the IMF edged down by $32 million to $4.71 billion.
