Forex reserves of $700 bn covers 95% of external debt, says RBI bulletin

THE country's foreign exchange reserves, which stood at close to $700 billion in the latest reporting week, can cover 95% of external debt outstanding at the end March 2025, and can take care of over 11 months of goods imports cover, as per the Reserve Bank's July bulletin released on Wednesday.

- ENS ECONOMIC BUREAU @ Mumbai

"The external sector remained resilient, backed by ample forex reserves and a moderate external debt-to-GDP ratio. At the current level, reserves cover 95% of external debt outstanding at the end March 2025, and can provide over 11 months of goods imports cover," the bulletin said. Forex reserves stood at $699.74 billion for the week to July 18, down by $3.04 billion, as per the RBI data, which attributed to the reduction in foreign currency assets, while gold reserves saw a slight increase.