India's foreign exchange reserves rose sharply to $2.7 billion in July

Current Context: India’s foreign exchange reserves rose by $2.703 billion to $698.192 billion for the week ending July 25, 2025, as announced by the Reserve Bank of India (RBI) on August 1, 2025.

• This rebound followed a three-week decline and was driven by gains across key components:
• Foreign Currency Assets: Increased by $1.316 billion, now totaling $588.926 billion — the largest share of the reserves.
• Gold Reserves: Rose by $1.206 billion to $85.704 billion, reflecting global trends in safe-haven accumulation.
• Special Drawing Rights (SDRs): Up by $126 million, reaching $18.809 billion, held with the IMF.
• Strategic Buffer: These reserves now cover 11 months of imports and 96% of India’s external debt, strengthening economic resilience.

Question:

Q.1 As per the RBI data released on August 1, 2025, India’s foreign exchange reserves rose to what level for the week ending July 25, 2025?
a) $695.489 billion
b) $698.192 billion
c) $700.105 billion
d) $692.346 billion

Answer: b) The reserves rose by $2.703 billion in that week, reaching $698.192 billion. This was a reversal after three weeks of decline.