RAS question
According to RBI data for the week ended December 19, 2025, India's foreign exchange reserves rose to approximately:
Correct answer: (C) $693 billion.
For the week ended December 19, 2025, India's foreign exchange reserves rose to about $693 billion, specifically $693.318 billion.
Explanation
RBI data for the week ended December 19, 2025 placed India's foreign exchange reserves at $693.318 billion after a weekly rise of $4.368 billion. That makes option C the closest approximation. The increase was not a single-line movement: foreign currency assets, the largest reserve component, rose by $1.641 billion to $559.428 billion, while gold reserves rose by $2.623 billion to $110.365 billion. The cited report also records small gains in SDRs and India's reserve position with the IMF. The figure therefore reflects a broad reserve build-up, led mainly by gold reserves and foreign currency assets, and remained close to but below the September 2024 all-time high of $704.89 billion.
Why the other options are wrong
- (A) $650 billion is too low because the RBI-reported total for the week ended December 19, 2025 was $693.318 billion.
- (B) $670 billion understates the reported reserve stock; the weekly increase took the total to about $693 billion, not the high-$600-billion range.
- (D) $720 billion is too high because the reported total was $693.318 billion and even the cited all-time high was lower, at $704.89 billion.
Concept
This tests the balance-of-payments and external-sector indicators part of Indian Economy. RAS repeatedly asks such figures because forex reserves, their components, and RBI reporting are core markers of external stability.