India’s foreign exchange reserves (forex) have climbed to $698.950 billion, inching closer to their all-time peak, bolstered by substantial gold holdings and strategic interventions by the Reserve Bank of India (RBI). The latest data reveals a $2.294 billion increase for the week ending June 13.

RBI Governor Sanjay Malhotra highlighted that the reserves now cover 11 months of imports and approximately 96% of external debt. The current figure is just shy of the record $704.89 billion achieved in September 2024. Foreign currency assets, the dominant component, stand at $589.426 billion.

Gold reserves have also seen a significant rise, reaching $86.316 billion. This aligns with a global trend where central banks are bolstering their reserves with gold as a safe-haven asset. Since 2021, the RBI’s gold holdings have nearly doubled.

Despite outflows in June, foreign investors injected ₹1,209 crore into Indian equities this week. The forex reserves saw a $58 billion increase in 2023, rebounding from a $71 billion drop in 2022, and have grown by over $20 billion in 2024.

Forex reserves, comprising assets like the US Dollar, Euro, and other major currencies, are crucial for stabilizing the economy. The RBI actively manages these reserves, buying dollars when the rupee strengthens and selling to curb excessive depreciation.