India foreign exchange reserves hit record $729.33 billion

India's foreign exchange reserves reached a record high of $729.33 billion for the week ending August 21, 2026, following a weekly increase of approximately $12.4 billion. This surge marks the first time the reserves have hit such a level since February 2026.

The growth was primarily driven by a $9.48 billion rise in foreign currency assets (FCA), which reached $591.33 billion, and a $2.8 billion increase in gold reserves, bringing the total gold holdings to $114.22 billion. Additionally, Special Drawing Rights (SDRs) with the IMF rose by $112 million to $18.85 billion.

Analysts attribute this increase to central bank measures implemented in June to attract foreign capital, including special deposit programs for non-resident Indians. These inflows have strengthened India's external financial position and provided the Reserve Bank of India with greater capacity to manage rupee volatility amid global economic uncertainties and fluctuating oil prices.

Separately, Pakistan's State Bank reported a modest increase in its reserves, with total liquid foreign exchange reserves rising by $81 million to reach $22.587 billion.