Current Context: India’s foreign exchange reserves reached an all-time high of $729.328 billion in the week ended 21 August 2026, according to data released by the Reserve Bank of India on 28 August 2026.
Key Points:
- India’s forex reserves reached a record $729.328 billion in the week ended 21 August 2026.
- The data was released by the Reserve Bank of India on 28 August 2026.
- The reserves increased by $12.422 billion in one week, mainly due to a sharp rise in Foreign Currency Assets and gold reserves. High forex reserves strengthen India’s ability to manage external shocks, international payments and excessive volatility in the rupee.
- Forex reserves increased by $12.422 billion during the week.
- In the previous week, reserves stood at $716.907 billion.
- Foreign Currency Assets (FCA) increased by $9.482 billion to $591.333 billion.
- FCA is the largest component of India’s foreign exchange reserves.
- India’s gold reserves increased by $2.801 billion to $114.218 billion.
- Special Drawing Rights (SDRs) increased to $18.852 billion.
- India’s Reserve Tranche Position with the IMF stood at $4.925 billion.
India’s forex reserves consist mainly of:
- Foreign Currency Assets
- Gold Reserves
- Special Drawing Rights
- Reserve Tranche Position with the IMF
- SDRs are international reserve assets created by the International Monetary Fund (IMF).
- High forex reserves provide a cushion against external economic shocks and help the RBI manage excessive volatility in the Indian rupee.
Question:
Q1. India’s foreign exchange reserves reached what record level in the week ended 21 August 2026?a) $716.9 billion
b) $721.3 billion
c) $729.3 billion
d) $739.3 billion
Answer: c) India’s foreign exchange reserves reached an all-time high of $729.328 billion in the week ended 21 August 2026. The data was released by the Reserve Bank of India on 28 August 2026.
