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). | 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)
Chief General Manager Press Release: 2026-2027/1016 |
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