India's foreign exchange reserves increased by $4.5 billion to cross $702 billion

Current Context: India’s foreign exchange reserves rose by $4.5 billion to reach $702.28 billion in the week ending 17 October 2025, according to RBI data.

• This increase was mainly driven by a sharp rise in gold reserves, which climbed by $6.2 billion to a record $108.5 billion.
• However, foreign currency assets (FCA) fell by $1.7 billion to $570.4 billion, reflecting currency fluctuations and RBI interventions.
• The IMF reserve position dipped slightly to $4.62 billion, while SDRs stood at around $18.8 billion.
• At this level, reserves provide an import cover of nearly 11 months and strengthen India’s external stability.
• This is just below the all-time high of $704.89 billion (Sept 2024), keeping India among the top global reserve holders.

Question:

Q.1 As per RBI data, what was India’s total foreign exchange reserves as of the week ending 17 October 2025?
a) $698.75 billion
b) $702.28 billion
c) $707.15 billion
d) $704.89 billion

Answer: b) India’s forex reserves rose by $4.5 billion to reach $702.28 billion in the week ending 17 October 2025. This was mainly due to an increase in gold reserves.