Gold Rush Boosts India’s Forex Reserves to $690 Billion Mark!

• India’s foreign exchange reserves soared by $4.56 billion, reaching $690.62 billion in the week ending May 9, 2025.

• This robust jump comes after a brief dip of $2.06 billion the previous week, marking a strong recovery and continuing the broader uptrend seen in recent months.

• The surge was powered primarily by a dramatic rise in gold reserves, which shot up by $4.52 billion to $86.34 billion, reflecting a global trend of central banks turning to gold as a safe-haven asset.

• Foreign currency assets, the largest component of the reserves, also saw a modest increase of $196 million, now totaling $581.37 billion.

• Special Drawing Rights (SDRs) dipped by $26 million to $18.53 billion, and India’s reserve position with the IMF fell by $134 million to $4.37 billion.

• The Reserve Bank of India’s active management has ensured that the country’s reserves now provide import cover for 10–12 months, underlining the resilience of India’s external sector.

• At just $14 billion shy of the all-time high reached in September 2024, the reserves highlight India’s strong economic fundamentals and growing export momentum, even amid global uncertainties.

• The RBI continues to leverage these reserves to maintain currency stability and shield the rupee from excessive volatility, reinforcing investor confidence in the Indian economy.