India's foreign exchange reserves rose sharply by $12.42 billion in the week ended August 21, taking the total reserves to $729.33 billion, according to the latest data released by the Reserve Bank of India (RBI).&nbsp;The rise was mainly driven by an increase in foreign currency assets, while gold reserves also posted a strong weekly gain.&nbsp;The $12.42 billion weekly increase came primarily from sustained foreign currency inflows. These followed the RBI's measures in June to attract overseas deposits and foreign currency borrowings. The central bank accumulated part of these inflows in its reserves.&nbsp;In rupee terms, India's total foreign exchange reserves stood at Rs 69.81 lakh crore as of August 21.&nbsp;The reserves have increased by $38.22 billion from the end of March 2026 and by $38.61 billion over the past year. This shows a sustained improvement in India's external reserve position.&nbsp;Foreign currency assets (FCAs), the largest component of India's foreign exchange reserves, increased by $9.48 billion during the week to $591.33 billion.&nbsp;On a year-on-year basis, FCAs were higher by $9.08 billion. In rupee terms, FCAs rose by Rs 1.08 lakh crore during the week to Rs 56.60 lakh crore.&nbsp;Gold reserves also contributed significantly to the weekly increase. The value of gold held as part of India's reserves rose by $2.80 billion to $114.22 billion during the week.&nbsp;Also Read: <a href="https://www.wionews.com/race-to-power/us-midterms-companies-close-to-trump-prepare-for-possible-democratic-takeover-of-house-race-to-power-1787931360846">US midterms: Companies close to Trump prepare for possible Democratic takeover of House | Race to Power</a><h3>Reserves cross previous record</h3>India's previous record forex reserve level of $728.494 billion was reached in the week ended February 27. Geopolitical tensions that followed led to several weeks of decline in reserves as the rupee came under pressure and the RBI intervened in the forex market through dollar sales.&nbsp;The latest increase has pushed India's reserve buffer further above the end-March level, with gains recorded across foreign currency assets, gold, Special Drawing Rights (SDRs) and the IMF reserve position.&nbsp;RBI data also showed that foreign currency assets rose by Rs 1.08 lakh crore, while gold holdings increased by Rs 30,022 crore during the week ended August 21.

India's foreign exchange reserves surged by $12.42 billion to a record $729.33 billion in the week ended August 21, driven mainly by higher foreign currency assets and gold reserves.

India's foreign exchange reserves rose sharply by $12.42 billion in the week ended August 21, taking the total reserves to $729.33 billion, according to the latest data released by the Reserve Bank of India (RBI). The rise was mainly driven by an increase in foreign currency assets, while gold reserves also posted a strong weekly gain. The $12.42 billion weekly increase came primarily from sustained foreign currency inflows. These followed the RBI's measures in June to attract overseas deposits and foreign currency borrowings. The central bank accumulated part of these inflows in its reserves. In rupee terms, India's total foreign exchange reserves stood at Rs 69.81 lakh crore as of August 21. The reserves have increased by $38.22 billion from the end of March 2026 and by $38.61 billion over the past year. This shows a sustained improvement in India's external reserve position. Foreign currency assets (FCAs), the largest component of India's foreign exchange reserves, increased by $9.48 billion during the week to $591.33 billion. On a year-on-year basis, FCAs were higher by $9.08 billion. In rupee terms, FCAs rose by Rs 1.08 lakh crore during the week to Rs 56.60 lakh crore. Gold reserves also contributed significantly to the weekly increase. The value of gold held as part of India's reserves rose by $2.80 billion to $114.22 billion during the week. Also Read: US midterms: Companies close to Trump prepare for possible Democratic takeover of House | Race to Power Reserves cross previous record India's previous record forex reserve level of $728.494 billion was reached in the week ended February 27. Geopolitical tensions that followed led to several weeks of decline in reserves as the rupee came under pressure and the RBI intervened in the forex market through dollar sales. The latest increase has pushed India's reserve buffer further above the end-March level, with gains recorded across foreign currency assets, gold, Special Drawing Rights (SDRs) and the IMF reserve position. RBI data also showed that foreign currency assets rose by Rs 1.08 lakh crore, while gold holdings increased by Rs 30,022 crore during the week ended August 21.

India's foreign exchange reserves surged by $12.42 billion to a record $729.33 billion in the week ended August 21, driven mainly by higher foreign currency assets and gold reserves.

India’s forex reserves touch record high of $729.33 billion, rise $12.42 billion

The Reserve Bank of India (RBI) on Wednesday (Jun 3) stepped in to dismiss reports suggesting it sold a portion of India's gold reserves to support the rupee and foreign exchange reserves. The clarification comes after political reactions and public speculation over the country's financial position. WION Decodes the issue.<h2>Why is this issue making headlines?</h2>The controversy began after reports claimed the RBI had sold roughly $12 billion worth of gold over two weeks ending May 22, 2026. The reports suggested the central bank was trying to protect India's foreign exchange reserves amid pressure on the rupee, rising oil prices and a higher import bill linked to geopolitical tensions.The claims quickly gained attention, with AAP chief Arvind Kejriwal questioning whether India had reached a point where it needed to sell its gold reserves. Aam Aadmi Party (AAP) national convenor Arvind Kejriwal on Wednesday questioned the centre about the alleged sale of gold reserves. On X, he questioned, "Is this news true? Is the country's gold being sold? Has the government become so bankrupt? In the last 76 years, there have been many such occasions when the country was in a difficult situation. But the country's gold was never sold. Does that mean the situation is extremely bad? Why doesn't the government tell us anything? What is the state of the country?"<h2>What did the RBI say?</h2>The RBI issued a direct rebuttal to the reports. "The RBI emphasises that these reports are not correct," the central bank said, adding that its physical stock of gold remains unchanged at 880.52 tonnes.The central bank also reminded the public that information about its gold holdings is published regularly in the RBI Monthly Bulletin and urged people to rely on official data instead of speculation.<h2>What do the numbers show?</h2>According to RBI data, India's physical gold holdings remain at 880.52 tonnes. Between September 2025 and March 31, 2026, Gold's share in India's forex reserves rose from 13.92 per cent to 16.70 per cent. The share increased further to 16.85% as of May 22, 2026.If the RBI had actually sold a substantial amount of gold, gold's share in reserves would likely have fallen rather than increased.<h2>Why does RBI hold gold?</h2>Gold serves several purposes for central banks, including diversification, which reduces dependence on any single currency, particularly the US dollar. Furthermore, these reserves serve as crisis protection as gold often retains value during financial crises, wars and periods of market instability. Lastly, large gold reserves strengthen confidence in a country's financial system and reserve position. &nbsp;

After claims that the RBI secretly sold billions of dollars worth of India's gold reserves sparked a political storm, with Arvind Kejriwal asking whether the country was facing a financial crisis, the central bank has now issued a fact-check. What was the issue? WION Decodes

The Reserve Bank of India (RBI) on Wednesday (Jun 3) stepped in to dismiss reports suggesting it sold a portion of India's gold reserves to support the rupee and foreign exchange reserves. The clarification comes after political reactions and public speculation over the country's financial position. WION Decodes the issue. Why is this issue making headlines? The controversy began after reports claimed the RBI had sold roughly $12 billion worth of gold over two weeks ending May 22, 2026. The reports suggested the central bank was trying to protect India's foreign exchange reserves amid pressure on the rupee, rising oil prices and a higher import bill linked to geopolitical tensions. The claims quickly gained attention, with AAP chief Arvind Kejriwal questioning whether India had reached a point where it needed to sell its gold reserves. Aam Aadmi Party (AAP) national convenor Arvind Kejriwal on Wednesday questioned the centre about the alleged sale of gold reserves. On X, he questioned, "Is this news true? Is the country's gold being sold? Has the government become so bankrupt? In the last 76 years, there have been many such occasions when the country was in a difficult situation. But the country's gold was never sold. Does that mean the situation is extremely bad? Why doesn't the government tell us anything? What is the state of the country?" What did the RBI say? The RBI issued a direct rebuttal to the reports. "The RBI emphasises that these reports are not correct," the central bank said, adding that its physical stock of gold remains unchanged at 880.52 tonnes. The central bank also reminded the public that information about its gold holdings is published regularly in the RBI Monthly Bulletin and urged people to rely on official data instead of speculation. What do the numbers show? According to RBI data, India's physical gold holdings remain at 880.52 tonnes. Between September 2025 and March 31, 2026, Gold's share in India's forex reserves rose from 13.92 per cent to 16.70 per cent. The share increased further to 16.85% as of May 22, 2026. If the RBI had actually sold a substantial amount of gold, gold's share in reserves would likely have fallen rather than increased. Why does RBI hold gold? Gold serves several purposes for central banks, including diversification, which reduces dependence on any single currency, particularly the US dollar. Furthermore, these reserves serve as crisis protection as gold often retains value during financial crises, wars and periods of market instability. Lastly, large gold reserves strengthen confidence in a country's financial system and reserve position.

After claims that the RBI secretly sold billions of dollars worth of India's gold reserves sparked a political storm, with Arvind Kejriwal asking whether the country was facing a financial crisis, the central bank has now issued a fact-check. What was the issue? WION Decodes

'Is the country's gold being sold?' RBI issues fact-check as Kejriwal questions centre over reserves | WION Decodes

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India’s forex reserves touch record high of $729.33 billion, rise $12.42 billion

Did India sell its gold to support rupee? RBI issues fact-check | WION Decodes