India’s forex reserves have once again crossed the $700 billion mark, reaching $702 billion in October 2025. This sharp recovery was mainly due to a significant rise in gold reserves, even as foreign currency assets fell slightly. The surge highlights India’s strong economic fundamentals and stable external position, supported by RBI’s effective market interventions.
India’s Forex Reserves Cross $700 Billion Mark Again
Key Points:
- India’s forex reserves reached $702 billion as of October 17, 2025.
- Total reserves rose by $4.4 billion in a week.
- Gold reserves increased by $6.1 billion, leading the overall rise.
- Foreign currency assets (FCA) dropped by $1.6 billion due to RBI’s dollar sales.
- SDRs rose slightly by $38 million, while IMF reserve position fell by $30 million.
- Gold prices surged from $4,017 to $4,251 per ounce, boosting valuation.
- India’s forex reserves had earlier peaked at $705 billion in 2024.
- Rising reserves strengthen India’s rupee stability, credit rating, and economic resilience.
Question & Answer
Q1. What is the current level of India’s forex reserves as of October 17, 2025?
(a) $680 billion
(b) $690 billion
(c) $702 billion
(d) $715 billion
Answer: $702 billion
Q2. Which component contributed the most to the increase in India’s forex reserves?
(a) Foreign Currency Assets
(b) Special Drawing Rights
(c) Gold Reserves
(d) IMF Position
Answer: Gold Reserves
Q3. How much did India’s gold reserves rise during the week?
(a) $4.4 billion
(b) $6.1 billion
(c) $3.7 billion
(d) $5.2 billion
Answer: $6.1 billion
Q4. What was the reason for the fall in foreign currency assets (FCA)?
(a) Global recession
(b) RBI’s dollar sales in the forex market
(c) Drop in gold prices
(d) Fall in import volume
Answer: RBI’s dollar sales in the forex market
Q5. What was India’s all-time high forex reserve level?
(a) $690 billion
(b) $705 billion
(c) $720 billion
(d) $698 billion
Answer: $705 billion
Q6. What role do high forex reserves play in India’s economy?
(a) Increase trade deficit
(b) Stabilize rupee and support economic confidence
(c) Decrease investment inflows
(d) Cause inflation
Answer: Stabilize rupee and support economic confidence
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