Forex Reserves: Big good news came amidst Israel-Iran tension, treasury increased by $ 5.17 billion

Forex Reserves: At a time when there is an atmosphere of uncertainty and panic in the markets around the world due to the increasing tension between Iran and Israel in the Middle East, a relief news has come for India. According to the latest report of the Reserve Bank of India (RBI), the country's foreign exchange reserves (Forex Reserves) have registered a tremendous increase of $ 5.17 billion in the week ended June 6, 2025. With this, India's total forex reserve has now reached $ 696.656 billion, which is a strong sign amid global economic uncertainties.

Strong recovery after the last decline

This increase is especially important because just a week before this, in the week ending May 30, India's forex reserve had declined by $ 1.24 billion. However, India's highest forex level so far has been $ 704.885 billion, which was recorded on September 27, 2024. In this sense, India is moving towards that level again.

FCA and Gold Reserves showed strength

The biggest contribution to this increase was from foreign currency assets (FCA) and gold reserves. According to RBI data, FCA increased by $3.472 billion, taking the figure to $587.687 billion now. FCA also includes the dollar as well as other global currencies like Euro, Yen and Pound, making this figure dependent on the movement of the international currency market.

At the same time, gold reserves also increased by $1.583 billion, taking it to $85.888 billion now. This is an indication that India is moving fast not only in terms of foreign currency but also in the storage of precious metals.

SDR and IMF deposits also increased

Apart from this, Special Drawing Rights (SDR) has increased by $102 million, and it has now become $18.672 billion. Indian reserves deposited with the IMF have also increased by $14 million, which has now become $4.409 billion.

What is the significance of this increase?

It is clear from this latest data that even though the global situation is tense—like the Iran-Israel crisis—India's economy remains stable and strong. India will get many benefits from the strengthening of foreign exchange reserves:

• The exchange rate of the rupee will remain stable.
• Import costs will remain under control.
• Global investors' confidence in India will increase.
• India's credibility will be strengthened in the global markets.