Sources of Variation in India’s Foreign Exchange Reserves during April-June 2026
RBI press-release 2026-2027/1016 · 01 Sept 2026
RBI press-release 2026-2027/1016 · 01 Sept 2026
Summary
Check the official recordThe Reserve Bank of India reports the balance of payments data for the first quarter of 2026. Foreign exchange reserves decreased by US$ 22.5 billion in nominal terms during April-June 2026. This total includes a valuation loss of US$ 14.4 billion. The valuation loss reflects the lower price of gold and the appreciation of the US dollar against major currencies. Excluding valuation effects, foreign exchange reserves decreased by US$ 8.1 billion on a balance of payments basis. The data provides a breakdown of current account balances, capital account movements, and valuation changes for the specified period.
Key dates
Who is affected
September 01, 2026
Sources of Variation in India’s Foreign Exchange Reserves during April-June 2026
Today, the Reserve Bank of India released the balance of payments (BoP) data for the first quarter (Q1), i.e., April-June of 2026 on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April-June 2026 are detailed below in Table 1.
Table 1: Sources of Variation in Foreign Exchange Reserves*
(US$ billion)
| Items | April-June 2025 | April-June 2026 |
|---|---|---|
| I. Current Account Balance | -3.4 | -4.2 |
| II. Capital Account (net) (a to f) | 7.9 | -3.9 |
| a. Foreign Investment (i+ii) | 6.9 | -3.5 |
| (i) Foreign Direct Investment (FDI) | 5.2 | 6.1 |
| (ii) Portfolio Investment | 1.6 | -9.6 |
| b. Banking Capital | -1.6 | 2.8 |
| of which: NRI Deposits | 3.6 | 2.8 |
| c. Short-term Credit | -0.1 | 3.5 |
| d. External Assistance | 0.7 | 0.4 |
| e. External Commercial Borrowings | 5.5 | 1.0 |
| f. Other Items in Capital Account | -3.5 | -8.1 |
| III. Valuation Change | 25.3 | -14.4 |
| IV. Total (I+II+III) @ Increase in reserves (+) / Decrease in reserves (-) | 29.8 | -22.5 |
*: 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$ 8.1 billion during April-June 2026 as against an accretion of US$ 4.5 billion during April-June 2025. Foreign exchange reserves in nominal terms (i.e., including valuation effects) decreased by US$ 22.5 billion during April-June 2026 as against an accretion of US$ 29.8 billion in April-June 2025 (Table 2).
ᮧेस ᮧकाशनी PRESS RELEASE
भारतीय ᳯरज़वर् बᱹक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi
संचार िवभाग, कᱶᮤीय कायार्लय, शहीद भगत ᳲसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in
Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in
Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
Table 2: Comparative Position of Variation in Reserves
(US$ billion)
| Items | April-June 2025 | April-June 2026 |
|---|---|---|
| 1. Change in Foreign Exchange Reserves (i.e., Including Valuation Effects) | 29.8 | -22.5 |
| 2. Valuation Effects [Gain (+)/Loss (-)] | 25.3 | -14.4 |
| 3. Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) | 4.5 | -8.1 |
Note: Increase in reserves (+)/Decrease in reserves (-).
Difference, if any, is due to rounding off.
The valuation loss, primarily reflecting lower price of gold and appreciation of US dollar against major currencies, amounted to US$ 14.4 billion during April-June 2026 as against a valuation gain of US$ 25.3 billion during April-June 2025.
(Brij Raj)
Press Release: 2026-2027/1016 Chief General Manager