MUMBAI, India, June 8 -- Reserve Bank of India issued the following press release:

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

Disclaimer: Curated by HT Syndication.