India’s forex reserves rises $3.5 billion: RBI reports higher gold holdings; IMF reserve position also improves

India's foreign exchange reserves rose by $3.51 billion, reaching $694.23 billion for the week ended August 29, as reported by the Reserve Bank of India (RBI) on Friday. This follows a decline of $4.386 billion to USD 690.72 billion in the preceding week.The data for the week ended August 29 revealed that foreign currency assets, which constitute a significant portion of the reserves, increased by $1.686 billion to $583.937 billion.The foreign currency assets, when expressed in dollar terms, reflect the impact of value changes in non-US currencies such as the euro, pound and yen that are part of the foreign exchange reserves.The RBI reported that gold reserves saw an increase of $1.766 billion, reaching $86.769 billion during this period.The apex bank noted that Special Drawing Rights (SDRs) increased by $40 million to $18.775 billion.According to the RBI data, India's reserve position with the IMF also improved by $18 million, reaching $4.749 billion in the reporting week.This comes after report that US Treasury bills seem to be losing favour, with the RBI stepping up gold holdings to increase India’s foreign exchange reserves. India's central bank has shown a preference for increasing gold reserves instead of US Treasury bills to strengthen its foreign exchange holdings, according to recent data from the US Department of Treasury and RBI.

The quantity of gold within foreign exchange reserves reached 879.98 metric tonnes as of June 27, 2025, rising from 840.76 metric tonnes recorded on June 28, 2024.According to an ET report, data revealed a decline in India's US T-bill investments in June compared to the previous year, whilst its gold reserves increased during this period. Nevertheless, India maintains its position among the top 20 investors in US T-bills, surpassing Saudi Arabia and Germany. Its holdings were valued at $227 billion in June 2025, down from $242 billion in June last year.