Daijiworld Media Network – New Delhi

New Delhi, Jun 6: India’s foreign exchange reserves stood at $691.5 billion as of May 30, sufficient to fund over 11 months of goods imports and cover 96% of the country's external debt, RBI Governor Sanjay Malhotra said on Friday.

The forex reserves dipped by $1.2 billion in the week ended May 30, ending an eight-week rising streak. This followed a robust $6.99 billion increase in the previous week, when the reserves peaked at $692.72 billion. The all-time high remains $704.89 billion, recorded in September 2024.

The largest component of the reserves, foreign currency assets, currently stand at $586.167 billion, while gold reserves now total $83.582 billion. Notably, the RBI has nearly doubled its gold holdings since 2021, in line with a global trend among central banks using gold as a hedge amid geopolitical uncertainty.

“India’s external sector remains resilient, and key vulnerability indicators continue to improve. We are confident of meeting all external financing requirements,” said Governor Malhotra.

External commercial borrowings and non-resident deposits have also seen higher net inflows year-on-year, further strengthening India’s forex position. A strong forex reserve allows the RBI to step in during currency volatility and maintain rupee stability.

Meanwhile, India’s exports have shown remarkable strength, with goods and services exports growing by 12.7% in April to $73.8 billion, up from $65.48 billion a year earlier, according to Commerce Ministry data, despite global trade challenges including US tariff hikes.