India’s foreign exchange reserves declined by US $ 6.711 billion to US $ 717.064 billion in the week ending February 6. This information was given by the Reserve Bank of India (RBI) in the data released on Friday (February 14). Last week, the country’s forex reserves had increased by $ 14.361 billion to reach a record high of $ 723.774 billion, but after four consecutive weeks of increase, it has now declined. During this period, due to fall in gold prices, a decline in gold reserves was also seen, on which rumors were raised about the disappearance of gold without any concrete fact-checking.
According to RBI, total reserves declined by $6.711 billion in the week ending February 6. Before this, there was a total increase of $ 36.97 billion in four weeks. Experts believe that the reserves had strengthened after the trade deal with the European Union (EU) and then America (US), after which a partial decline has now been seen.
According to the latest data, there has been a big decline in the value of gold reserves. Gold holding decreased to US $ 123.476 billion. A deficit of $14.208 billion was recorded in this. If seen in rupee terms, this is equivalent to a decline of about Rs 1.29 lakh crore. However, experts say that the main reason for this is the sharp fall in gold prices in the international market, which reduced the valuation of gold kept in the government treasury.
Meanwhile, in the report of Punjab Kesari, claims like gold being “missing” were made, which the Press Information Bureau (PIB) fact-checked and declared them to be fake.
Foreign currency assets (FCA), the major part of the total reserves, increased by $ 7.661 billion to reach $ 570.053 billion. In the previous week, a decline of $ 493 million was recorded. FCA has declined three times in the last six weeks, while rising in other weeks.
February 6: +7.661 billion dollars
January 30: –0.493 billion dollars
January 23: +2.367 billion dollars
January 16: +9.652 billion dollars
January 9: –1.124 billion dollars
January 2: –7.622 billion dollars
RBI in its recent monetary policy meeting has clarified that India’s external sector is in a strong position. The current reserves of $717.064 billion are capable of covering import expenses for more than 11 months.
So far in the year 2025, foreign exchange reserves have increased by about 56 billion dollars. This increase will be more than $20 billion in 2024. India had added $58 billion in 2023, while a deficit of $71 billion was recorded in 2022.
Overall, the decline of $6.7 billion from the record high may seem large, but the strong import cover and increase in FCA indicate that India’s foreign exchange reserves are still in a stable and strong position.
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