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Weekly economy wrap: Forex reserves at record high as monsoon risk persists

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Weekly economy wrap: Forex reserves at record high as monsoon risk persists

Home / Economy / News / Weekly economy wrap: Forex reserves at record high as monsoon risk persists

Weekly economy wrap: Forex reserves at record high as monsoon risk persists

Record forex reserves and stronger credit flows provided support, but uneven monsoon rains, food-price interventions and external risks kept policymakers on alert

India’s foreign exchange reserves jumped $12.4 billion to an all-time high of $729.3 billion in the week ended August 21. (File image)

Rishabh Sharma New Delhi 3 min read Last Updated : Aug 30 2026 | 12:22 PM IST

India’s economy produced a mixed set of signals during the week, with record foreign exchange reserves and stronger flows of funds to the commercial sector providing some comfort even as industrial growth moderated and the monsoon remained uneven.

Food and farm-related developments dominated the policy agenda. The government reopened wheat exports and tweaked raw sugar import conditions and tightened stockholding norms. At the same time, fresh US sanctions on Iran added another external-sector risk. Forex reserves scale new peak

India’s foreign exchange reserves jumped $12.4 billion to an all-time high of $729.3 billion in the week ended August 21. The increase was aided by inflows through the RBI’s concessional foreign-currency swap window, strengthening the economy’s external buffer.

The Reserve Bank of India (RBI), in its August Bulletin, said improved rainfall in July had brought kharif sowing closer to normal and partly eased agricultural risks. However, cumulative monsoon rainfall remained 13 per cent below normal between June 1 and August 26, with 14 states and Union Territories recording deficient rainfall.


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