Reserve Bank Governor Sanjay Malhotra on Friday said the forex reserve stood at a healthy USD 682.3 billion, adequate to provide import cover for about 11 months. Various policy initiatives are expected to strengthen the balance of payments, he said while announcing the second bi-monthly monetary policy for the current fiscal.The initiatives include the recent agreements with major trading partners, allowing 100 per cent FDI in the insurance sector, ethanol blending programme, push for energy transition, easing FDI restrictions for land-bordering countries, liberalisation of the ECB framework, and several others, he said.
"As of May 29, 2026, India's foreign exchange reserves stood at a healthy USD 682.3 billion, adequate in terms of the standard metrics of reserve adequacy, including import cover (for about 11 months) and external debt (89.1 per cent)," he said."While our foreign exchange reserves provide a strong buffer against external shocks, we have a broad range of regulatory and market-based instruments to respond effectively as may be required. In this regard, we remain vigilant and are fully prepared to do whatever it takes to preserve orderly market conditions," he said.India's forex reserves dropped USD 7.511 billion to USD 681.384 billion during the week ended May 22. The kitty had expanded to an all-time high of USD 728.494 billion during the week ended February 27 this year, before the onset of the West Asia conflict, which led to several weeks of decline as the rupee came under pressure and the RBI had to intervene in the forex market by selling dollars.
