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India's Forex Reserves Near Record High, Up $3.3 Billion in a Week

India's foreign exchange reserves increased by $3.293 billion in the week ending December 26, reaching $696.610 billion and moving closer to the all-time high set in September 2024. The rise was driven by significant growth in gold reserves, which jumped by nearly $3 billion, alongside an increase in foreign currency assets. The Reserve Bank of India has stated the reserves are sufficient to cover over 11 months of imports, highlighting the external sector's resilience. After a major decline in 2022, reserves have seen substantial rebuilding, with an increase of about $56 billion in 2025 so far.

Key Points: India's Forex Reserves Rise to $696.6 Billion, Near All-Time High

  • Reserves up $3.3bn to $696.6bn
  • Gold holdings surge by nearly $3bn
  • Reserves near Sept 2024 record of $704.89bn
  • RBI confident in meeting external financing needs
2 min read

India's forex kitty nears fresh all-time high, rose by $3.3 billion in latest week

India's forex kitty grew by $3.3 billion, nearing its record peak. Gold reserves saw a significant jump, boosting overall economic resilience.

India's forex kitty nears fresh all-time high, rose by $3.3 billion in latest week
"the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports - RBI"

New Delhi, January 4

India's foreign exchange reserves rose by USD 3.293 billion in the week that ended December 26 to USD 696.610 billion, driven by a jump in both gold reserves and foreign currency assets, the Reserve Bank of India's latest 'Weekly Statistical Supplement' data showed.

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

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

For the reported week (that ended December 26), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 559.612 billion, up USD 184 million.

The RBI data showed that gold reserves currently stand at USD 113.320 billion, up USD 2.956 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

P
Priya S
Good to see the reserves growing, especially the jump in gold. With so much global uncertainty, it's wise to hold physical assets. But I hope this strength also translates to better control on inflation for the common man. Petrol prices are still pinching.
R
Rohit P
The numbers look impressive on paper, no doubt. But as a small exporter, I'm more concerned about the rupee's actual volatility in the market. The RBI's intervention is crucial, but sometimes the swings still hurt our margins. Need more stability.
S
Sarah B
Interesting data. The strategic buying and selling of dollars mentioned at the end is key. It shows active, smart management. 11 months of import cover is a very comfortable position compared to many emerging economies.
V
Vikram M
Bhai, almost 700 billion! That's a serious number. After the drop in 2022, this recovery is strong. It means we can handle external pressures much better. Good job by the authorities. Now, let's hope some of this strength helps in reducing interest rates for home loans!
K
Kavya N
While the headline number is great, the composition matters. The increase coming largely from gold's price rise is a bit different from a surge due to strong FDI or exports. It's still positive, but the source of the growth is worth noting.

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

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