Today, the Reserve Bank of India released the balance of payments (BoP) data for the fourth quarter (Q4), i.e., January-March of 2025-26, and for April-March 2025-26 on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during 2025-26 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves* |
(US$ billion) |
Items | 2024-25 | 2025-26 |
I. | | Current Account Balance | -23.1 | -25.4 |
II. | | Capital Account (net) (a to f) | 18.0 | 1.8 |
| a. | Foreign Investment (i+ii) | 4.5 | -9.4 |
| | (i) Foreign Direct Investment (FDI) | 1.0 | 6.9 |
| | (ii) Portfolio Investment | 3.6 | -16.4 |
| b. | Banking Capital | -9.8 | 6.4 |
| | of which: NRI Deposits | 16.2 | 14.4 |
| c. | Short-term Credit | 7.2 | 13.7 |
| d. | External Assistance | 6.3 | 2.6 |
| e. | External Commercial Borrowings | 15.9 | 11.1 |
| f. | Other Items in Capital Account | -6.0 | -22.7 |
III. | | Valuation Change | 26.9 | 46.4 |
IV. | | Total (I+II+III) @
Increase in reserves (+) / Decrease in reserves (-) | 21.9 | 22.8 |
*: 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$ 23.6 billion during 2025-26 as compared to a depletion of US$ 5.0 billion during 2024-25. Foreign exchange reserves in nominal terms (i.e., including valuation effects) increased by US$ 22.8 billion during 2025-26 as compared to an accretion of US$ 21.9 billion in 2024-25 (Table 2).
Table 2: Comparative Position of Variation in Reserves |
(US$ billion) |
Items | 2024-25 | 2025-26 |
1. | Change in Foreign Exchange Reserves (i.e., Including Valuation Effects) | 21.9 | 22.8 |
2. | Valuation Effects [Gain (+)/Loss (-)] | 26.9 | 46.4 |
3. | Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) | -5.0 | -23.6 |
Note: Increase in reserves (+)/Decrease in reserves (-).
Difference, if any, is due to rounding off. |
The valuation gain, primarily reflecting higher price of gold and depreciation of US dollar against major currencies, increased to US$ 46.4 billion during 2025-26 from US$ 26.9 billion during 2024-25. (Brij Raj)
Chief General Manager Press Release: 2026-2027/413 |
