India’s foreign exchange reserves fell by $8.094 billion, settling at $688.894 billion for the week ended May 15, according to data released by the Reserve Bank of India (RBI) on Friday.
The sharp decline reverses a brief recovery from the preceding week (ended May 8), when the reserves had climbed by $6.295 billion to hit $696.988 billion.
Geopolitical Pressures and Market Intervention
The country’s forex reserves had previously climbed to a historic peak of $728.494 billion during the week ended February 27, 2026. However, the subsequent outbreak of conflict in the Middle East disrupted global energy markets and triggered a multi-week downward trajectory. As international developments put severe pressure on the Indian Rupee, the RBI frequently stepped into the market, selling dollars to stem local currency volatility.
In light of these macro pressures, Prime Minister Narendra Modi issued a public appeal on May 11, urging citizens to assist in conserving the nation’s foreign exchange by voluntarily curbing gold purchases, rationalizing fuel consumption, and reducing non-essential foreign travel for the next year.
Breakdown of the Weekly Changes
Every major component of India’s reserve kitty saw a decline during the reporting week:
| Reserve Component | Current Value (as of May 15) | Weekly Change |
| Foreign Currency Assets (FCA) | $545.904 billion | Down $6.483 billion |
| Gold Reserves | $119.317 billion | Down $1.536 billion |
| Special Drawing Rights (SDRs) | $18.824 billion | Down $49 million |
| IMF Reserve Position | $4.850 billion | Down $25 million |
Note on FCA Valuation: Foreign Currency Assets are expressed in US dollar terms but remain heavily influenced by the appreciation or depreciation of non-US currencies—such as the Euro, British Pound, and Japanese Yen—held within the central bank’s basket.
