India’s Forex Reserves Drop by $8 Billion in One Week
India’s foreign exchange reserves have witnessed a sharp decline, falling by $8.09 billion to $688.89 billion for the week ending May 15, 2026, according to the latest Reserve Bank of India (RBI) data.
The reserves had previously touched a record high of $728.49 billion in February 2026, but global instability and rising crude oil prices have triggered continuous pressure on India’s reserves.
Why is this happening? • RBI is selling dollars to support the Indian rupee. • Rising Middle East tensions are impacting oil supply and global trade. • Higher crude oil prices are increasing India’s import costs. • Strong demand for the US dollar is adding more pressure.
Breakdown of the decline: Foreign Currency Assets: Down by $6.48 billion Gold Reserves: Down by $1.54 billion SDR Holdings: Slight decline IMF Reserve Position: Minor drop
Prime Minister Narendra Modi recently appealed to citizens to reduce unnecessary foreign travel, cut fuel consumption, and avoid gold purchases for a year to help conserve foreign exchange.
Experts warn that continued decline in forex reserves could put pressure on the rupee, increase import costs, and push inflation higher — although India’s reserves are still considered strong by global standards.
