Foreign Exchange Slide Puts Pressure on Resilience
RBI’s Reserves Fall Amid Stronger Dollar

This infographic visualizes India’s $2.7 billion drop in forex reserves, bringing the total to $687.73 billion, according to the latest RBI data. It reflects valuation changes driven by a stronger U.S. dollar as well as outflows in non-dollar denominations like the euro, pound, and yen.
The breakdown shows declines across key components: foreign currency assets (FCA) dropped by $2.45B, and gold reserves fell by $195M. Despite the drop, India remains among the top carriers globally, highlighting continued resilience in its external balance.
The infographic further highlights how large reserves provide a buffer against global financial shocks, but warns that persistent currency volatility could stress monetary policy. It underscores the importance of strategic reserve management, especially as India navigates global rate cycles and geopolitical risks.