Reserves remain $25 billion below February peak; recovery pace remains gradual
Reserve Bank of India reported that India’s foreign exchange reserves increased by $2.362 billion to $703.308 billion for the week ended April 17, 2026, according to data released on Friday.
This marks the second consecutive weekly increase, following a $3.825 billion rise in the previous week.
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Reserves still below February peak after geopolitical-driven decline
India’s forex reserves had reached an all-time high of $728.494 billion in the week ended February 27, 2026.
At the current level, reserves remain $25.186 billion below that peak, after declining in subsequent weeks amid escalating tensions in West Asia.
The earlier decline was linked to pressure on the Indian rupee, during which the central bank intervened in the forex market through dollar sales.
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Foreign currency assets drive weekly increase
Foreign currency assets (FCA), the largest component of reserves, increased by $1.481 billion to $557.463 billion during the week.
The RBI noted that FCA values are impacted not only by flows but also by valuation changes arising from movements in major currencies such as the euro, pound, and yen against the US dollar.
The data does not separate how much of the increase is due to valuation gains versus actual reserve accumulation.
Gold, SDRs and IMF position contribute marginally
Gold reserves rose by $790 million to $122.133 billion.
Other components showed smaller increases:
- Special Drawing Rights (SDRs): up $78 million to $18.841 billion
- Reserve position with IMF: up $14 million to $4.87 billion
Recovery pace indicates gradual rebuild of reserves
Over the last two weeks, forex reserves have increased by a combined $6.187 billion.
At an average pace of roughly $3.1 billion per week, a full recovery to the February peak level would require several more weeks, assuming no renewed intervention or external shocks.
This highlights that while reserves are rising, the recovery remains gradual rather than sharp.
Key variable: extent of RBI intervention and currency pressure
The movement in reserves continues to depend on two factors:
- The level of pressure on the Indian rupee
- The extent of RBI intervention in the forex market
Without detailed disclosure on intervention volumes, weekly reserve changes reflect a mix of currency valuation effects and central bank actions.
FAQs
What are India’s forex reserves in April 2026?
India’s forex reserves stood at $703.308 billion for the week ended April 17, 2026, according to the Reserve Bank of India.
What is India’s forex reserves all-time high?
India’s forex reserves reached a record high of $728.494 billion in the week ended February 27, 2026.
Why did India’s forex reserves fall in 2026?
Reserves declined after February due to geopolitical tensions in West Asia, which put pressure on the rupee and led to RBI intervention through dollar sales.
Why are India’s forex reserves rising again?
The recent increase is driven by a combination of foreign currency asset valuation changes and reduced pressure on the rupee, though the RBI does not provide a breakdown between these factors.
What is the gap between current reserves and peak level?
India’s current reserves are $25.186 billion below the all-time high recorded in February 2026.
