Today, the Reserve Bank of India released the balance of payments (BoP) data for the third quarter (Q3), i.e., October-December 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-December 2025 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves* |
(US$ billion) |
Items | April-December 2024 | April-December 2025 |
I. | | Current Account Balance | -36.7 | -30.2 |
II. | | Capital Account (net) (a to f) | 22.9 | -0.6 |
| a. | Foreign Investment (i+ii) | 10.0 | -1.3 |
| | (i) Foreign Direct Investment (FDI) | 0.6 | 3.0 |
| | (ii) Portfolio Investment | 9.4 | -4.3 |
| b. | Banking Capital | -0.8 | 1.0 |
| | of which: NRI Deposits | 13.3 | 11.1 |
| c. | Short-term Credit | 11.6 | 15.3 |
| d. | External Assistance | 4.2 | 1.0 |
| e. | External Commercial Borrowings | 7.9 | 6.7 |
| f. | Other Items in Capital Account | -10.0 | -23.4 |
III. | | Valuation Change | 3.1 | 50.2 |
IV. | | Total (I+II+III) @
Increase in reserves (+) / Decrease in reserves (-) | -10.7 | 19.4 |
*: Based on the old format of BoP 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$ 30.8 billion during April-December 2025 as compared to a depletion of US$ 13.8 billion during April-December 2024. Foreign exchange reserves in nominal terms (i.e., including valuation effects) increased by US$ 19.4 billion during April-December 2025 as against a depletion of US$ 10.7 billion in April-December 2024 (Table 2).
Table 2: Comparative Position of Variation in Reserves |
(US$ billion) |
Items | April-December 2024 | April-December 2025 |
1. | Change in Foreign Exchange Reserves (i.e., Including Valuation Effects) | -10.7 | 19.4 |
2. | Valuation Effects [Gain (+)/Loss (-)] | 3.1 | 50.2 |
3. | Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) | -13.8 | -30.8 |
Note: Increase in reserves (+)/Decrease in reserves (-).
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$ 50.2 billion during April-December 2025 from US$ 3.1 billion during April-December 2024. (Brij Raj)
Chief General Manager Press Release: 2025-2026/2202 |
