New Delhi [India], January 31 (ANI): India’s foreign exchange reserves rose to a new all-time high in the week ended January 23, according to the latest data released by the Reserve Bank of India.
Foreign exchange reserves increased by USD 8.053 billion during the week to reach USD 709.413 billion, driven by a sharp rise in both gold reserves and foreign currency assets. In recent weeks, the country’s forex reserves have largely remained on an upward trend.
The previous record high of USD 704.89 billion was recorded in September 2024.
For the week under review, India’s foreign currency assets, the largest component of the reserves, stood at USD 562.885 billion, marking an increase of USD 2.367 billion. RBI data showed that gold reserves rose significantly to USD 123.088 billion, up USD 5.635 billion from the previous week.
Following the monetary policy review meeting in early December, the RBI had said that India’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. The central bank has maintained that the country’s external sector remains resilient and that it can comfortably meet its external financing requirements.
In 2025, India’s forex reserves have increased by about USD 56 billion, according to official data. In comparison, reserves rose by just over USD 20 billion in 2024, while in 2023 India added around USD 58 billion. This followed a cumulative decline of USD 71 billion in 2022.
Foreign exchange 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 regularly intervenes in the foreign exchange market by managing liquidity, including selling dollars to prevent sharp depreciation of the rupee. The central bank typically buys dollars when the rupee is strong and sells when the currency weakens.
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