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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
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