India's forex reserves hit record $729.3 billion on August 21

India's foreign exchange reserves reached a record high of $729.328 billion in the week ended August 21, 2026, according to data released by the Reserve Bank of India. The figure surpasses the previous peak of $728.494 billion set in late February and represents a substantial increase of $12.422 billion in a single week. The surge is largely attributed to a strategic mobilization of foreign currency through the central bank's special swap facilities, particularly deposits from non-resident Indians. The latest data shows the reserve buildup was led by foreign currency assets, which rose by $9.482 billion to $591.333 billion. Gold reserves increased by $2.801 billion in reported dollar value to $114.218 billion, though officials note this reflects valuation changes from international gold prices and exchange rates rather than a direct purchase. Special Drawing Rights holdings and India's reserve position at the International Monetary Fund also contributed to the total. A key driver of the broader accumulation has been the Reserve Bank's concessional USD/INR swap facility introduced in June to encourage foreign currency inflows. As of August 21, authorized dealer banks reported $72.