India forex reserves at $682.3bn: 11-month cover, RBI

What the RBI governor said at the MPC meeting

Reserve Bank of India Governor Sanjay Malhotra said India’s foreign exchange reserves stood at a “healthy” $182.3 billion as of May 29, 2026. He said the stockpile is adequate under standard measures of reserve adequacy. Malhotra flagged two key yardsticks in his statement: import cover and external debt coverage. According to him, the reserves provide import cover of about 11 months. He also said the reserves are equivalent to 89.1% of India’s external debt. The comments were made during the Monetary Policy Committee meeting on Friday.

Latest reserve level and what it covers

The $182.3 billion figure was cited as of May 29, 2026. Malhotra said that, despite a recent drawdown, the reserve position remains comfortable by key metrics. He reiterated that import cover is in the 10-11 months range, which is a commonly used benchmark for adequacy. The external debt coverage ratio of 89.1% was also highlighted as a cushion against external shocks. The RBI’s messaging focused on comfort and sufficiency rather than any near-term shortage. The governor’s assessment comes at a time when markets have been tracking reserve changes closely.

Recent correction: what the weekly data showed

The article also cites weekly RBI data showing a decline before the May 29 level. India’s forex reserves dropped by $1.511 billion to $181.384 billion during the week ended May 22. This indicates that the May 29 level of $182.3 billion represents a slight improvement from the previous week’s number in the same report. The narrative in the governor’s remarks framed the move as a correction rather than a structural weakening. As of June 5, 2026, the report says reserves remain comfortably above $180 billion. The RBI has continued to intervene in currency markets to manage volatility, as noted in the same coverage.

A look back: the gap versus February highs

RBI data cited in the report showed reserves were at $123 billion as of February 20, before the outbreak of the US-Iran war. Comparing that to $182.3 billion as of May 29 suggests a drawdown of about $10.7 billion over the period. The article also referenced a separate level of $123.8 billion as of January 30, 2026, which the governor described as “very healthy” and providing more than 11 months of merchandise import cover. These datapoints together show reserves have eased from the earlier peak zone but remain elevated by historical standards mentioned in the report. The key point emphasised by the RBI remains adequacy rather than the absolute peak value.

Key metrics: import cover and external debt coverage

Import cover measures how many months of imports can be paid for using existing reserves if external inflows stop. Malhotra placed India’s import cover at about 11 months based on the May 29 reserve stock. The report also notes that economists often consider 6-8 months of import cover as safe, offering context for why 10-11 months is viewed as comfortable. The second metric cited by the governor was external debt coverage. At 89.1% of external debt, the reserves are positioned as a buffer against external liabilities. The article also references the Guidotti-Greenspan Rule, an IMF-linked benchmark suggesting reserves should at minimum cover short-term external debt maturing within 12 months.

What the Economic Survey and global rankings add

The report cites World Gold Council data saying that at the end of the third quarter of 2025, India had the world’s sixth highest forex reserves. It also references the Economic Survey’s assessment of a comfortable external position in the short run. According to the Economic Survey cited, forex reserves covered over 11 months of imports as of January 16, 2026. The same cited passage said reserves were approximately 94.0% of external debt outstanding as of end-September 2025. These references are used to support the RBI’s argument that external buffers have strengthened.

What the reserves are made of

The article notes that foreign currency assets dominate India’s reserves. It says these assets accounted for roughly 80% of the total at the end of FY26, with foreign currency assets at about $152 billion. The report adds that this composition allows the RBI to intervene quickly when needed. The emphasis in the article is on liquidity and the ability to respond to volatility, rather than on any change in composition. No additional breakdown was provided beyond this headline share and value.

Why markets are watching reserves amid geopolitical risk

The article links reserve tracking to geopolitical tensions and oil vulnerability. It notes that India depends heavily on imported crude oil, around 85-90%, and that much of this supply comes through the Strait of Hormuz. In that context, another figure cited in the report says reserves of about $198 billion would cover nearly 11-12 months of imports. Separately, the report also mentions a level of $110 billion while still describing import cover of over 11 months. These figures underscore that, across different snapshots mentioned, the narrative anchor has been import cover staying around the 11-month mark.

Key figures table: levels and metrics cited

Market impact and why the RBI’s comfort message matters

The market-relevant point from the governor’s remarks is that the RBI views the current reserve stock as adequate under standard yardsticks. The May 29 level of $182.3 billion was presented as sufficient for roughly 11 months of imports, a figure the RBI repeatedly referenced as a “standard metric”. The weekly drawdown of $1.511 billion to $181.384 billion in the week ended May 22 shows that reserves can move meaningfully in short periods. But the article’s broader message is that India still has a large buffer compared with many peers, supported by the sixth-highest global ranking cited for Q3 2025. The mention of the Guidotti-Greenspan Rule and continued RBI intervention ties reserves directly to currency management and external vulnerability monitoring.

Conclusion

India’s forex reserves were reported at $182.3 billion as of May 29, with about 11 months of import cover and 89.1% coverage of external debt, according to RBI Governor Sanjay Malhotra. The stockpile is lower than the $123 billion level cited for February 20, but the RBI says the position remains comfortable by key benchmarks. The next set of weekly reserve data updates and subsequent RBI communications will remain the main checkpoints for markets tracking volatility and external buffers.