- India,
- 23-Aug-2025 07:20 AM IST
India Forex Reserves: According to the Reserve Bank of India (RBI), India's foreign exchange reserves increased by $1.48 billion to $695.10 billion in the week ended August 15, 2025. This significant increase reflects India's economic stability. At the end of September 2024, this reserve reached a record level of $704.885 billion, which is the highest ever figure for India.Increase in foreign exchange assetsForeign currency assets, which are the largest part of the total reserves, increased by $1.92 billion to $585.90 billion this week. These assets include the effect of fluctuations in the value of major currencies such as the euro, pound and yen. Apart from this, India's reserve position in the International Monetary Fund (IMF) increased by $15 million to $4.75 billion.Decrease in gold reservesHowever, gold reserves declined by $2.16 billion to $86.16 billion. The Reserve Bank of India periodically intervenes in the foreign exchange market, such as buying and selling dollars, to prevent excessive fluctuations in the rupee exchange rate and keep liquidity balanced in the market. The RBI says that it intervenes in the market only when needed.Improvement in Pakistan's foreign exchange reservesPakistan's foreign exchange reserves have also seen a slight improvement. According to data from the State Bank of Pakistan (SBP), the central bank's holdings increased by $13 million to $14.256 billion in the week ended August 15, 2025. The country's total foreign exchange reserves stood at $19.571 billion, of which commercial banks account for $5.315 billion.Week-on-week increaseAccording to Ketrade Securities, Pakistan's total foreign exchange reserves are capable of covering 2.32 months of imports. The State Bank of Pakistan reserves recorded a 0.09% increase, while commercial bank reserves increased by 1.16%, reaching $5.3 billion.Comparative outlookIndia's foreign exchange reserves are far stronger and larger than Pakistan's. India's reserves are not only sufficient to cover imports but also provide a strong protection against global economic uncertainties. On the other hand, Pakistan's reserves, though showing signs of improvement, are still limited and this reflects the country's economic challenges.
