New Delhi [India], January 4 (ANI): India’s foreign exchange reserves rose by USD 3.293 billion in the week ended December 26, reaching USD 696.610 billion, according to the Reserve Bank of India’s (RBI) latest Weekly Statistical Supplement. The increase was driven by a rise in both gold reserves and foreign currency assets.
Over the past few weeks, India’s forex kitty has remained largely on an upward trajectory and is now hovering close to its all-time high of USD 704.89 billion, recorded in September 2024.
For the reported week, foreign currency assets (FCA)—the largest component of the reserves—stood at USD 559.612 billion, registering an increase of USD 184 million.
The RBI data also showed a sharp rise in gold reserves, which climbed by USD 2.956 billion to USD 113.320 billion. Gold prices have been on a strong upward trend in recent months, likely reflecting heightened global uncertainties and robust investment demand for the safe-haven asset.
Following the monetary policy review meeting in early December, the RBI stated that India’s foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports. The central bank has expressed confidence 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 approximately USD 56 billion, according to official data. This follows a rise of just over USD 20 billion in 2024. In 2023, reserves grew by around USD 58 billion, in contrast to 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 holdings in the Euro, Japanese Yen, and Pound Sterling.
The RBI actively intervenes in the foreign exchange market to manage liquidity and curb excessive volatility in the rupee. It typically purchases dollars when the rupee is strong and sells them when the currency weakens to prevent sharp depreciation. (ANI)
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