New Delhi. India’s foreign exchange reserves declined by $ 6.711 billion in the week ending February 6, 2026, bringing the total reserves down to $ 717.064 billion. This change came after last week’s record high of $ 723.774 billion, when reserves saw an increase of $ 14.361 billion.
Huge reduction in gold reserves
According to central bank data, the main reason for this decline was the decrease in gold reserves. That week the value of India’s gold reserves declined by $14.208 billion to $123.476 billion. Experts believe that this major change was due to fluctuations in global gold prices and revaluation of international assets.
Increase in foreign currency assets
Despite the decline in gold reserves, an increase in foreign currency assets was seen. This part of the total reserves increased by $7.661 billion to reach $570.053 billion. This includes changes in the value of non-US currencies such as the dollar, euro, pound and yen.
What is the overall condition of other components?
The RBI report also said that there has been a slight decline in the country’s Special Drawing Rights (SDR) and IMF reserve positions. The SDR declined by $132 million to $18.821 billion, while the IMF declined by $32 million to $4.715 billion.
What is the meaning of decline in foreign reserves?
Economic experts say that this fluctuation in foreign reserves was mainly due to changes in global gold prices and intervention activities of the central bank in the foreign exchange market. However, despite the steep decline, India’s foreign reserves are still in a strong position globally, providing protection to the country’s economy from external shocks.
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