RBI’s Gold Reserves Surpass $100 Billion, India’s Forex Reserves Reach $698 Billion

RBI’s Gold Reserves Cross $100 Billion, India’s Forex Reserves at $697.8 Billion.

The Reserve Bank of India (RBI) has achieved a historic milestone as its gold reserves surpassed $100 billion for the first time, while the country’s overall foreign exchange (forex) reserves stood at $697.784 billion for the week ended October 10, according to the latest RBI data.

Gold Reserves Hit Record High

The value of RBI’s gold holdings rose by $3.595 billion to $102.365 billion, driven by a surge in global gold prices, which recently crossed $4,300 per ounce. Gold now constitutes 14.7% of India’s total forex reserves, the highest share since 1996-97. Over the past decade, gold’s share in India’s reserves has nearly doubled—from below 7% to nearly 15%—reflecting both central bank accumulation and rising bullion prices.

Despite the milestone, RBI’s gold purchases slowed in 2025, with acquisitions in only four of the first nine months totaling 4 tonnes, sharply lower than 50 tonnes during the same period last year.

Overall Forex Reserves

India’s total forex reserves declined slightly by $2.176 billion to $697.784 billion. The foreign currency assets (FCAs), the largest component, fell by $5.605 billion to $572.103 billion, influenced by fluctuations in currencies like the euro, pound, and yen.

Other components of the forex kitty also saw marginal changes:

Special Drawing Rights (SDRs): down by $130 million to $18.684 billion

Reserve position with the IMF: down by $36 million to $4.632 billion

Trends in Forex Reserves

India’s forex reserves have seen significant growth in recent years:

• 2023: increased by ~$58 billion
• 2024: rose by just over $20 billion
• 2025 (so far): cumulative rise of ~$47.8 billion

Significance

Forex reserves, held mainly in US dollars, along with euros, yen, and pounds, enable the RBI to manage rupee volatility. The central bank buys dollars when the rupee strengthens and sells them when it weakens to stabilize the currency and maintain liquidity in the market.