India Forex Reserve / India has lost 53000 crores in 2 weeks, why is Islamabad jumping

India Forex Reserve: India's foreign exchange reserves have declined for the second consecutive week. According to the Reserve Bank of India (RBI), India's foreign exchange reserves fell by $3.06 billion to $696.67 billion in the week ended July 11, 2025. In the previous week, it was $699.74 billion with a decrease of $3.05 billion. In this way, a total decline of $6.11 billion, i.e. about Rs 53 thousand crores has been seen in two weeks. This decline is a significant decrease from the all-time high of $704.88 billion in September 2024.

The main reason for this decline is believed to be the rise in the dollar index and the weakness in the Indian rupee. At present, the value of the rupee has crossed the level of 86 against the dollar. Experts believe that if this trend continues, then further reduction in foreign exchange reserves may be seen in the coming days. Apart from this, the trade deal between India and America not being finalized yet and the threat of tariffs on BRICS countries by the US has also increased the pressure on the rupee. The Reserve Bank of India is continuously spending dollars to stabilize the rupee, which is further affecting the reserves.

Gold and other reserves also decreased

Foreign currency assets (FCA), a major part of the foreign exchange reserves, declined by $ 2.48 billion to $ 588.81 billion in the week ended July 11. This includes the effect of fluctuations in the prices of non-US currencies like Euro, Pound and Yen. Along with this, the value of gold reserves decreased by $ 498 million to $ 84.35 billion. Special Drawing Rights (SDR) decreased by $ 66 million to $ 18.80 billion, while India's reserve with the International Monetary Fund (IMF) decreased by $ 24 million to $ 4.71 billion.

Increase in foreign exchange reserves in Pakistan

On the other hand, Pakistan has seen an increase in its foreign exchange reserves. The State Bank of Pakistan (SBP) reported that its foreign exchange reserves increased by $23 million in the week ended July 11, taking the total reserves to $14.53 billion. Commercial banks hold net foreign exchange reserves of $5.43 billion, bringing the country's total liquid foreign exchange reserves close to $19.96 billion. This increase is a positive sign for Pakistan, especially when regional economies are facing pressure.

Comparative analysis and future scenario

The contrasting trends in the foreign exchange reserves of India and Pakistan reflect several economic and geopolitical factors. India's economy is more vulnerable to volatility in global trade and currency markets, which is affecting the rupee and reserves. On the other hand, Pakistan's recent increase may possibly be driven by international financial assistance or a slight improvement in exports.

However, India's foreign exchange reserves are still much larger than Pakistan's, the continuous decline is a matter of concern. Experts believe that the RBI may have to intervene further to stabilize the rupee, which may put further pressure on the reserves. On the other hand, Pakistan will have to focus on long-term economic reforms to further strengthen its reserves.