Today, the Reserve Bank of India released the balance of payments (BoP) data for the second quarter (Q2), i.e., July-September of 2025-26, on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April-September 2025 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves* |
(US$ billion) |
Items | April-September 2024 | April-September 2025 |
I. | | Current Account Balance | -25.3 | -15.1 |
II. | | Capital Account (net) (a to f) | 49.2 | 8.6 |
| a. | Foreign Investment (i+ii) | 24.2 | 3.6 |
| | (i) Foreign Direct Investment (FDI) | 3.4 | 7.7 |
| | (ii) Portfolio Investment | 20.8 | -4.1 |
| b. | Banking Capital | 9.0 | 0.3 |
| | of which: NRI Deposits | 10.2 | 6.1 |
| c. | Short-term Credit | 7.5 | 2.9 |
| d. | External Assistance | 3.5 | 1.2 |
| e. | External Commercial Borrowings | 3.5 | 4.5 |
| f. | Other Items in Capital Account | 1.4 | -3.9 |
III. | | Valuation Change | 35.5 | 38.2 |
IV. | | Total (I+II+III) @
Increase in reserves (+) / Decrease in reserves (-) | 59.4 | 31.8 |
*: Based on the old format of BoP (BPM5) which may differ from the new format (BPM6) in the treatment of transfers under the current account and ADRs/ GDRs under portfolio investment.
@: Difference, if any, is due to rounding off.
Note: ‘Other Items in Capital Account’ apart from ‘Errors and Omissions’ includes SDR allocation, leads and lags in exports/imports, funds held abroad, advances received pending issue of shares under FDI, capital receipts not included elsewhere, and rupee denominated debt. |
On a balance of payments basis (i.e., excluding valuation effects), foreign exchange reserves decreased by US$ 6.4 billion during April-September 2025 as against an accretion of US$ 23.8 billion during April-September 2024. Foreign exchange reserves in nominal terms (i.e., including valuation effects) increased by US$ 31.8 billion during April-September 2025 as compared with an increase of US$ 59.4 billion in April-September 2024 (Table 2).
Table 2: Comparative Position of Variation in Reserves |
(US$ billion) |
Items | April-September 2024 | April-September 2025 |
1. | Change in Foreign Exchange Reserves (i.e., Including Valuation Effects) | 59.4 | 31.8 |
2. | Valuation Effects [Gain (+)/Loss (-)] | 35.5 | 38.2 |
3. | Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) | 23.8 | -6.4 |
Notes: 1. Increase in reserves (+)/Decrease in reserves (-).
2. Difference, if any, is due to rounding off. |
The valuation gain, primarily reflecting higher price of gold, depreciation of US dollar against major currencies and lower bond yields, increased to US$ 38.2 billion during April-September 2025 from US$ 35.5 billion during April-September 2024. (Brij Raj)
Chief General Manager Press Release: 2025-2026/1599 |
