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India's Forex Reserves Soar to Record $709.4 Billion, Marking Strong 2025 Start

India's foreign exchange reserves have climbed to a record $709.4 billion as of late January, driven by substantial weekly increases in both foreign currency assets and gold holdings. The Reserve Bank of India notes this level is sufficient to cover more than 11 months of the country's merchandise imports, indicating strong external sector resilience. This marks a significant recovery, with reserves adding about $56 billion so far in 2025, following a $20 billion rise in 2024 and a $58 billion increase in 2023. The RBI actively manages these reserves, buying dollars when the rupee is strong and selling to prevent excessive depreciation.

Key Points: India Forex Reserves Hit Record High of $709.4 Billion

  • Reserves hit all-time high of $709.4 billion
  • Gold reserves surged by $5.6 billion
  • Reserves cover over 11 months of imports
  • Strong rebound from 2022's decline
2 min read

India's forex reserves hit record high of $709.4 billion

India's foreign exchange reserves surge to a new peak of $709.4 billion, boosted by significant increases in gold and foreign currency assets.

"the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports - RBI"

New Delhi, January 31

India's foreign exchange reserves reached a new all-time high in the week ended January 23, according to the Reserve Bank of India's latest data.

Foreign exchange reserves rose sharply by USD 8.053 billion in the week to USD 709.413 billion, driven by a jump in both gold reserves and foreign currency assets.

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

Its previous high was USD 704.89 billion, touched in September 2024.

For the reported week (that ended January 23), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 562.885 billion, up USD 2.367 billion.

The RBI data showed that gold reserves currently stand at USD 123.088 billion, up USD 5.635 billion from the previous week.

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 forex 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 ideally sells when it weakens.

- ANI

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Reader Comments

P
Priya S
Great to see the reserves growing, especially the big jump in gold. But I hope this strength translates to more stability in fuel and everyday import prices for the common man. That's the real test.
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Aman W
The RBI's strategy of buying dollars when the rupee is strong seems to be paying off. Smart management. This buffer is crucial with all the global uncertainty. Kudos to the team!
S
Sarah B
As someone working in exports, this is very reassuring. A strong reserve means the RBI can prevent wild swings in the rupee, which helps us plan better with international clients. Positive sign for business.
V
Vikram M
Record high is good, but let's not forget 2022 when we saw a big decline. We must be cautious and not get complacent. The global economy is still on shaky ground. Need sustainable policies, not just headline numbers.
K
Kavya N
More than 11 months of import cover! That's a solid position. It should help keep inflation in check for imported items. Hope some of this strength is used to boost manufacturing at home too. #AatmanirbharBharat

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