India’s Forex Reserves Up $1.69 Billion, RBI data

Current Context: India’s foreign exchange reserves rose by USD 1.69 billion to reach USD 688.94 billion in the week ending 12 December 2025, according to the Reserve Bank of India (RBI).

• The data was officially released on 19 December 2025.
• The increase was driven by a rise in foreign currency assets (FCA), which climbed USD 906 million to USD 557.78 billion.
• Gold reserves also grew by USD 758 million, touching USD 107.74 billion.
• Special Drawing Rights (SDRs) rose by USD 14 million to USD 18.74 billion, while the IMF reserve position recorded a slight uptick.
• This marks the second consecutive weekly increase, strengthening India’s external buffer.
• At nearly USD 689 billion, India remains among the world’s largest forex reserve holders, ensuring currency stability and import cover.

Question:

Q.1 The Reserve Bank of India (RBI) attributed the rise in India’s foreign exchange reserves mainly to an increase in which component?
a) Gold reserves
b) IMF reserve position
c) Special Drawing Rights (SDRs)
d) Foreign Currency Assets (FCA)

Answer: d) According to the RBI, Foreign Currency Assets (FCA) increased by USD 906 million, making it the largest contributor.