Foreign exchange reserves increase for the second consecutive week, rising nearly $24 billion in two weeks
MUMBAI (Econoy India): India’s foreign exchange reserves surged by $11.47 billion to a new all-time high of $740.80 billion in the week ended August 28, according to data released by the Reserve Bank of India (RBI) on Friday.
The latest increase follows a sharp rise of $12.42 billion in the previous week, when the country’s forex reserves reached $729.39 billion, which was a record at the time.
With the latest jump, India’s foreign exchange reserves have increased by nearly $23.89 billion in just two weeks, highlighting the strength of the country’s external financial position.
Forex Reserves Cross $740 Billion Mark
The latest RBI data shows that India’s forex reserves have crossed the $740-billion milestone for the first time.
The movement in reserves over the past two weeks is as follows:
| Week Ended | Forex Reserves |
|---|---|
| August 22, 2026 | $729.39 billion |
| August 28, 2026 | $740.80 billion |
| Weekly Increase | $11.47 billion |
The continued rise provides India with a larger foreign exchange buffer to deal with external economic and financial uncertainties.
Why Forex Reserves Matter for India
Foreign exchange reserves are an important indicator of a country’s external financial strength. India’s reserves comprise foreign currency assets, gold reserves, Special Drawing Rights (SDRs) and the country’s reserve position with the International Monetary Fund (IMF).
A strong reserve position provides a cushion against external shocks and helps a country meet its international payment obligations.
For India, which depends significantly on imports, particularly energy and other essential commodities, adequate foreign exchange reserves are especially important.
Positive Signal for the Indian Economy
A large forex reserve provides greater confidence in India’s ability to manage periods of volatility in global financial markets.
While the value of the Indian rupee is influenced by several factors, including capital flows, interest rates, inflation and global currency movements, a strong reserve position gives the Reserve Bank of India greater capacity to manage disorderly market conditions.
The latest record also comes at a time when global markets continue to navigate economic uncertainty and fluctuations in commodity and currency markets.
Reserves Rise Nearly $24 Billion in Two Weeks
The latest figures underline the pace of accumulation in India’s foreign exchange reserves.
After rising by $12.42 billion in the week ended August 22, reserves increased another $11.47 billion in the following week.
This means the country added nearly $24 billion to its reserve holdings in two weeks, taking the total to $740.80 billion.
Strong External Financial Buffer
India’s record-high forex reserves strengthen the country’s external financial buffer and provide additional resilience against global economic shocks.
The continued monitoring of foreign exchange reserves will remain important for investors and policymakers, particularly amid movements in the rupee, foreign capital flows, global interest rates and international commodity prices.
The latest RBI figures therefore mark another significant milestone for India’s external sector, with reserves reaching a fresh record of $740.80 billion.
(Economy India)
