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India's Forex Reserves Surge $14 Billion, Nearing Record High of $701 Billion

India's foreign exchange reserves increased sharply by $14.167 billion in the week ending January 16, reaching a total of $701.360 billion. The rise was driven by significant increases in both foreign currency assets and gold reserves. The reserves are now hovering near the all-time high of $704.89 billion set in September 2024. The Reserve Bank of India states the external sector is resilient, with reserves sufficient to cover more than 11 months of merchandise imports.

Key Points: India's Forex Reserves Jump $14B to $701B, Near Record

  • Reserves up $14.167B to $701.36B
  • Gold reserves rise $4.623B
  • Foreign currency assets increase $9.652B
  • Reserves cover 11+ months of imports
2 min read

India's forex reserves rise over $14 billion to $701 billion as of January 16

India's foreign exchange reserves rise sharply by $14.167 billion to $701.36 billion, driven by gains in gold and 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 25

India's foreign exchange reserves rose sharply, by USD 14.167 billion in the week that ended January 16, to USD 701.360 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. This followed a marginal rise in the previous week.

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

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

For the reported week (that ended January 16), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 560.518 billion, up USD 9.652 billion.

The RBI data showed that gold reserves currently stand at USD 117.454 billion, up USD 4.623 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
The jump in gold reserves is particularly interesting. With global uncertainty, it's a smart, traditional safe-haven move. Shows prudent long-term thinking by the RBI.
V
Vikram M
Good numbers, no doubt. But I hope this strength translates into more stability for the common man. Petrol prices are still high, and import costs affect everything. The reserves should help control inflation, yaar.
P
Priyanka N
From a decline of $71 billion in 2022 to adding ~$56 billion in just this financial year? That's a remarkable turnaround. Kudos to the policymakers and the RBI for steering the ship through rough global waters.
R
Rohit P
"Sufficient to cover more than 11 months of imports" - this is the key takeaway for me. It means our economy is on a much firmer footing. Attracts foreign investment too. Bullish on India's growth story!
M
Michael C
As someone watching from outside, India's consistent build-up of reserves is impressive. It provides a crucial buffer. The strategic buying and selling of dollars mentioned shows active and smart management.

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