New Delhi. India’s foreign exchange reserves have once again recorded a decline. According to the Reserve Bank of India, the country’s foreign exchange assets declined to $ 691.49 billion in the week ended on 30 May 2025. During this period, the store recorded a decrease of $ 1.23 billion.

Exactly a week earlier, the reserves had increased by $ 6.992 billion in the week ended on 23 May 2025, causing a total reserves to $ 692.721 billion. At the same time, on 16 May 2025 it fell by $ 4.888 billion. The main reason for that decline was the decrease in international prices of gold.

These are the main reasons behind the fall

• The RBI can sell dollars to maintain the stability of the rupee. This put pressure on foreign exchange reserves.
• The decline in the value of currencies like euro, yen and pounds in FCA (foreign exchange assets) also affects the total reserves.
• Increase in import bills and payment of outstanding foreign loans may also be the cause of decline in reserves.
• Global economic instability, such as an increase in oil prices or changes in American monetary policy, also affect foreign reserves.

India is still in a strong position

However, despite the current decline, India’s foreign exchange reserves remain sufficient for 11 months of imports. RBI Governor Sanjay Malhotra said that this level is still a sign of India’s economic stability.

The highest level in September 2024

India’s foreign exchange reserves reached an all -time high of $ 704.885 billion in September 2024. Since then it has been ups and downs.

Why are foreign exchange reserves important?

Foreign exchange reserves are a collection of safe foreign assets kept by a country, including the amount deposited in dollars, gold, SDR and IMF. It plays an important role in the country’s economic strength, currency stability and global trade. Experts believe that if the reserves continue to decline, the trust of foreign investors may weaken. However, at present, India’s situation is considered stable.