There has been a slight decline in India’s foreign exchange reserves. According to the latest data released by the Reserve Bank of India (RBI), the country’s foreign exchange reserves declined by $ 2.11 billion to $ 723.608 billion in the week ending February 20, 2026. However, despite the decline, reserves still remain at historically strong levels.
A new record was made last week
Earlier, in the week ending February 13, India’s foreign exchange reserves had reached an all-time high of $ 725.727 billion with a sharp increase of $ 8.66 billion. Earlier, a record level of $ 723.774 billion was recorded in January 2026. Experts are considering the recent decline as part of normal fluctuations.
Why are forex reserves important?
Foreign exchange reserves are considered an important indicator of the economic strength of any country. It is used for import payments, foreign debt liabilities and to maintain the stability of the rupee. Strong forex reserves provide security to the country during global economic uncertainty.
Possible reason for decline
According to experts, the main reasons for the decrease in reserves could be changes in foreign currency assets, strengthening of the dollar and intervention in the market by RBI to keep the rupee stable. Often the central bank buys and trades dollars to prevent large fluctuations in the exchange rate, which results in temporary changes in reserves.
What signs next?
Economists believe that India’s foreign exchange reserves are still at a safe level and the country’s external position remains strong despite volatility in global markets. Strong exports, stable capital inflows and investor confidence could support the reserves in the coming months. Overall, the recent decline is considered part of normal economic activity rather than a matter of concern, while India’s forex reserves are still among the largest in the world.