India’s foreign‑exchange reserves fell by $1.269 billion to $719.748 billion in the week ended Oct. 23, the Reserve Bank of India (RBI) said on Friday.
This drop represents the seventh consecutive week of falling reserves, following a $5 billion decline in the preceding week, the RBI bulletin noted.
Reserve Composition
While the overall reserves fell, the composition shifted: foreign‑currency assets (FCAs) rose by $1.358 billion to $593.205 billion, whereas gold holdings fell by $2.65 billion to $103.15 billion.
Analysts note that steady foreign‑currency inflows support the Indian rupee, but the gold depreciation mirrors global market trends.
The RBI’s weekly bulletin is part of its regular transparency on India’s balance‑of‑payments position, which informs policy decisions on the national currency and external finance.
With reserves below the $720 billion threshold, India remains in a cautious phase where reserve management is critical to cushioning external shocks.
The RBI also stressed that the reserve changes will be reviewed in the upcoming policy meeting, where officials may decide whether to adjust strategic reserves based on evolving economic conditions.
