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15 August 2026

Foreign exchange reserves growth

Foreign exchange reserves are a key macroeconomic indicator for the Indian economy, providing essential context for questions on balance of payments, currency stability, and external sector management.

1 min read 1 questions 1 prelims

Notes

  • India's foreign exchange reserves increased by $14.136 billion to reach $707.002 billion for the week ended August 7.
  • The previous reporting week (ended July 31) recorded an increase of $10.512 billion, reaching $692.866 billion.
  • The reserves had previously peaked at an all-time high of $728.494 billion on February 27.
  • The decline in reserves following the February peak was attributed to the onset of the Middle East conflict, which exerted pressure on the Indian rupee.

Questions

  1. Analyze the factors influencing the volatility of India's foreign exchange reserves and their significance in maintaining macroeconomic stability. 150 words
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Prelims

  1. As of the reporting week ended August 7, what was the total value of India's foreign exchange reserves?

Syllabus

Topics

Sources

250words.in · https://250words.in/daily/2026-08-15/foreign-exchange-reserves-growth