India's Foreign Exchange Reserves
Composition and Management
India's foreign exchange reserves are managed by the Reserve Bank of India (RBI) and consist of four components: Foreign Currency Assets (FCA), Gold Reserves, Special Drawing Rights (SDRs), and Reserve Tranche Position with the International Monetary Fund (IMF). FCA is the largest component, typically accounting for around 85–88% of total reserves, invested primarily in US Treasury securities, sovereign bonds of select countries, and deposits with foreign central banks.
- As of early March 2026, India's forex reserves were approximately $709–720 billion (among the top 4 globally).
- Foreign Currency Assets (FCA): ~$616 billion (invested in USD, Euro, GBP, JPY-denominated instruments).
- Gold Reserves: ~$65 billion, now constituting ~15% of total reserves (up from ~7% a decade ago), reflecting a strategic diversification.
- SDRs: ~$18.5 billion (a basket-based international reserve asset created by the IMF, not a currency).
- Reserve Tranche with IMF: ~$4.3 billion (India's quota-based claim on the IMF).
- A decline in reserves can reflect: (1) RBI selling foreign currency to support rupee, (2) valuation losses as the USD strengthens against reserve currencies, or (3) both simultaneously.
● Tracked since March 13, 2026 · last seen April 24, 2026 · updates as the daily brief publishes
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