Business & Economy
At $729 billion, forex kitty hits a record
How much room does this give the RBI to manage the rupee?
How much room does this give the RBI to manage the rupee?
India’s are a key buffer for the , trade payments, and protection against , so a fresh record signals stronger short-term comfort for the economy. The latest rise reflects a mix of support, steady , and , but the real question is how much of this build-up will last once the special inflow channels ease.
The new reserve high gives the more capacity to smooth , support , and cushion external shocks. Reuters said the increase was tied to persistent inflows from policy measures aimed at strengthening India’s , which also improves the country’s and external buffer.
India’s foreign exchange reserves jumped $12.422 billion in the week ended August 21 to a record $729.328 billion. rose $9.4 billion to $591 billion, while increased $2.8 billion to $114 billion, driving the headline surge.
By August 21, the RBI said foreign exchange inflows under its special had reached $72.848 billion. made up the bulk of that total, while and inflows also added to the reserve-supporting inflow pipeline.
The RBI reported another weekly gain of $9.905 billion to $716.907 billion in the week ended August 14. rose by $7.225 billion to $581.851 billion, showing that the recovery was broad-based rather than a one-off move.
After sliding from the February high during earlier months, reserves started rising again in late July and early August. showed a $14.136 billion weekly jump to $707.002 billion in the week ended August 7, driven by large dollar inflows.
The RBI’s continued to draw strong foreign currency deposits after the February peak. By August 21, had mobilized $65.397 billion in , with total inflows through the window reaching $72.848 billion.
India’s reached an earlier record of $728.494 billion in the week ended February 27, 2026, after rising $4.885 billion that week. The jump followed a brief dip in the previous reporting week and established the benchmark that the August surge later surpassed.