Foreign exchange reserves: India's drop by $2.69 billion to $717 billion

What happened. India's foreign exchange reserves fell by $2.691 billion to $717.056 billion in the week ended October 30. The RBI published the figure in its Weekly Statistical Supplement on Friday, November 6. In the previous week, PTI reports, reserves had already fallen by $1.269 billion to $719.748 billion.

Where the drop came from. Foreign currency assets, the largest block, lost $2.088 billion and stand at $591.118 billion. Gold fell by $559 million to $102.591 billion. Special Drawing Rights (SDRs), reserve assets allocated by the IMF, dropped by $47 million to $18.558 billion. India's reserve position with the IMF rose by $3 million to $4.79 billion. As PTI explains, foreign currency assets are counted in dollars, so they include the effect of the euro, pound and yen rising or falling against the dollar.

The bigger picture. Reserves hit an all-time high of $785.706 billion in the week ended September 4. PTI says that came from a heavy inflow of currency under a special concessional swap for deposits from the diaspora, through which banks raised a record $133 billion. Reserves have been on a decline since. Experts quoted by PTI put it down to the deployment of FCNR(B) resources and to RBI dollar sales to defend the currency. The RBI table also shows that reserves are $25.949 billion above end-March 2026 and $27.324 billion above a year ago. Over the year, foreign currency assets rose by $26.527 billion and the value of gold by $865 million.

What it means. Reserves are a buffer. It is smaller than at the peak, but larger than a year ago. For a reader outside India, it shows how the cushion of a large emerging economy is changing and how much room it has to manage its currency. Weekly numbers also move with exchange rates, so one week is not a trend. We make no forecasts. Gold in India's reserves is worth $102.591 billion; see the gold price here: https://freekonomist.com/en/commodities/gold/. For another central bank's reserves, read our China story: https://freekonomist.com/en/news/china-pboc-gold-24th-month-fx-reserves-october-2026-11-07/

Confirmed facts

• In the week ended October 30, 2026, India's foreign exchange reserves fell by $2.691 billion to $717.056 billion (RBI data released November 6).^[1][2][3]
• Foreign currency assets fell by $2.088 billion to $591.118 billion; gold by $559 million to $102.591 billion; SDRs by $47 million to $18.558 billion; the reserve position in the IMF rose by $3 million to $4.79 billion.^[1][2][3]
• Reserves are $25.949 billion above end-March 2026 and $27.324 billion above a year ago.^[1][3]
• Over the year foreign currency assets rose by $26.527 billion and the value of gold by $865 million.^[1][3]
• In the previous week reserves fell by $1.269 billion to $719.748 billion.^[2]
• The all-time high of $785.706 billion came in the week ended September 4; reserves have been on a decline since.^[2]
• PTI ties the rise to the peak to a heavy inflow of currency under a special concessional swap for deposits from the diaspora, through which banks raised a record $133 billion.^[2]
• Experts quoted by PTI attribute the decline to the deployment of FCNR(B) resources and to RBI dollar sales to defend the currency.^[2]
• Foreign currency assets are expressed in dollars and include the effect of the euro, pound and yen rising or falling against the dollar.^[2]
• SDRs are reserve assets allocated by the IMF.^[3]

Implications

• ConfirmedIndia's reserves on October 30 remain above their end-March 2026 level and their level a year ago.
• ConfirmedExperts quoted by PTI link the fall to FCNR(B) use and RBI dollar sales; the sources do not split the fall between these drivers and currency valuation.
• Our readingOne weekly figure says little about a trend; more RBI releases are needed. This is our reading.

Still unknown

• How much of the fall came from RBI dollar sales, FCNR(B) use and currency valuation
• How reserves will move in the coming weeks
• How much FCNR(B) money is still to be deployed

Who it affects

India. Readers who follow the rupee and emerging markets, and anyone interested in central banks and gold in reserves

Sources

1. Reserve Bank of India: Weekly Statistical Supplement: Foreign Exchange Reserves (November 6, 2026) November 6, 2026 · official
2. ThePrint (PTI): India's forex reserves drop by USD 2.69 bn to USD 717 bn November 6, 2026 · media
3. The Times of India: India's forex reserves dip by $2.69 billion: What's behind the decline? November 7, 2026 · media