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India's Forex Reserves Edge Up to $687.2 Billion as Gold Holdings Jump

India's foreign exchange reserves saw a marginal increase of $392 million, reaching $687.193 billion for the week ending January 9. The rise was driven by a significant $1.568 billion jump in gold reserves, even as foreign currency assets declined. The Reserve Bank of India states the reserves are sufficient to cover more than 11 months of merchandise imports, reflecting a resilient external sector. Overall, the forex kitty remains close to its all-time high of nearly $705 billion recorded in September 2024.

Key Points: India Forex Reserves Rise to $687.2 Billion, Gold Reserves Up

  • Forex reserves rise $392M to $687.2B
  • Gold reserves jump $1.568B
  • Foreign currency assets drop $1.124B
  • Reserves cover over 11 months of imports
2 min read

India forex reserves rise $392 million to $687.2 billion in week that ended Jan 9

India's forex reserves increased by $392 million to $687.193 billion as gold holdings rose by $1.568 billion, despite a drop in foreign currency assets.

"India's external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements. - RBI"

New Delhi, January 18

India's foreign exchange reserves rose marginally, by USD 392 million in the week that ended January 9, to USD 687.193 billion, driven by a jump in gold reserves while foreign currency assets dropped, the Reserve Bank of India's latest 'Weekly Statistical Supplement' data showed. This followed a sharp drop in the previous week.

Over the past few weeks, the forex kitty has been largely in an uptrend, barring exceptions.

The country's foreign exchange (forex) kitty has been hovering close to its all-time high of USD 704.89 billion, reached in September 2024.

For the reported week (that ended January 9), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 550.866 billion, down USD 1.124 billion.

The RBI data showed that gold reserves currently stand at USD 112.830 billion, up USD 1.568 billion from the previous week.

The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.

After the latest monetary policy review meeting in early December, the RBI had said that the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports.

Overall, India's external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements.

In 2025, the forex kitty has increased by about 56 billion, according to data.

In 2024, reserves rose by just over USD 20 billion.

In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022.

Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling.

The RBI often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.

- ANI

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Reader Comments

S
Sarah B
Interesting to see the shift from foreign currency assets to gold. With the dollar's volatility, diversifying into a tangible asset like gold seems prudent. The 11+ months of import cover is very reassuring for economic stability.
V
Vikram M
While the headline number looks good, a marginal rise of just $392 million after a sharp drop the previous week isn't something to celebrate too much. We need consistent, strong growth in reserves, not this volatility. Hope RBI's strategy works in the long run.
P
Priya S
The data shows a clear recovery from the 2022 decline. Adding ~$56 billion in 2025 so far is impressive! This strength should help keep inflation in check and give the government more policy space. Jai Hind!
R
Rohit P
As a common man, I just want to know - will this strong reserve position prevent the rupee from falling further against the dollar? Petrol prices are already so high. The RBI's dollar buying/selling strategy needs to protect our purchasing power.
M
Michael C
The resilience of India's external sector is noteworthy compared to many emerging markets. The strategic accumulation of gold, now over $112 billion, is a significant hedge. This data points to sound macroeconomic management.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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