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India's Forex Reserves Hit Record $723.8 Billion, Gold Holdings Surge

India's foreign exchange reserves have surged to a fresh all-time high of $723.774 billion as of late January. The increase was primarily driven by a sharp $14.6 billion jump in gold reserves, even as foreign currency assets dipped slightly. The Reserve Bank of India states the reserves are sufficient to cover over 11 months of imports, highlighting external sector resilience. The reserves have seen significant growth in recent years, rebounding strongly from a decline in 2022.

Key Points: India's Forex Reserves Reach Record High of $723.8 Billion

  • Reserves hit $723.8 billion record
  • Gold reserves surge by $14.6 billion
  • Foreign currency assets see slight dip
  • RBI confident in meeting external financing needs
2 min read

India's forex reserves touch fresh record high of $723.8 billion

India's foreign exchange reserves surge to a new all-time high of $723.8 billion, driven by a significant increase in gold reserves, RBI data shows.

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

Mumbai, February 8

India's foreign exchange reserves reached another new all-time high in the week ended January 30, according to the Reserve Bank of India's latest data.

Foreign exchange reserves rose sharply by USD 14.361 billion in the week to USD 723.774 billion, driven by a jump in gold reserves while foreign currency assets dropped.

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

Its previous high was USD 709.403 billion, touched in the previous week.

For the reported week (that ended January 30), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 562.392 billion, down USD 493 million.

The RBI data showed that gold reserves currently stand at USD 137.683 billion, up USD 14.595 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

S
Sarah B
Interesting to see the shift towards gold. With global uncertainty, it's a prudent move by the RBI to diversify. A $14 billion jump in gold reserves in one week is significant. Shows confidence in the long-term store of value.
P
Priya S
Great numbers, but I hope this strength translates to benefits for the common person. A stronger reserve should ideally help control inflation and make imports cheaper. Let's see if petrol prices reflect this stability.
R
Rohit P
From a decline of $71 billion in 2022 to adding ~$56 billion so far in 2025? That's a remarkable turnaround. Kudos to the policymakers and the RBI for steering the ship through rough global waters. Jai Hind!
M
Michael C
As an investor watching India, this is a very positive signal. It reduces external vulnerability and makes the country more attractive for long-term foreign investment. The strategic buying/selling of dollars mentioned shows capable management.
K
Kavya N
While the headline number is impressive, the drop in foreign currency assets (FCA) is a point to note. The overall increase is driven by gold valuation. We must ensure our export growth keeps pace to build the FCA steadily as well.
V
Vikram M
"Sufficient to cover more than 11 months of imports" - that

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