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India's forex reserves see sharp decline May 22
29 May
Summary
- Forex reserves fell $7.511 billion to $681.384 billion by May 22.
- Gold reserves declined $4.53 billion, contributing to the drop.
- Prime Minister urged citizens to conserve forex reserves.
India's foreign exchange reserves saw a significant decrease of USD 7.511 billion during the week ending May 22, 2026, bringing the total reserves to USD 681.384 billion. This followed a previous drop of USD 8.094 billion in the week prior. The reserves had previously reached an all-time high of USD 728.494 billion in late February 2026.
The decline is attributed to several factors, including the ongoing Middle East conflict which has put pressure on the rupee, necessitating intervention by the Reserve Bank of India (RBI) through dollar sales. Foreign currency assets, a major component of the reserves, fell by USD 2.872 billion to USD 543.032 billion. Additionally, the value of gold reserves decreased by USD 4.53 billion, now standing at USD 114.786 billion.
In response to the dwindling reserves, Prime Minister Narendra Modi has made public appeals for citizens to conserve foreign exchange. These appeals include calls to limit foreign travel, reduce fuel consumption, and refrain from purchasing gold for a year. Special Drawing Rights and India's reserve position with the IMF also saw minor decreases during the reporting week.
