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India’s foreign exchange reserves rose sharply in the week that ended January 16, driven by a jump in both gold reserves and foreign currency assets, as per data by the Reserve Bank of India (RBI).

In its latest ‘Weekly Statistical Supplement’ report, the apex bank said the country’s total forex reserves were now at USD 701.360 billion – one of its all-time-high – after adding USD 14.167 billion.

This followed a marginal rise in the previous week, in continuation of an uptrend over the past few weeks.

Its last all-time high was set in September, 2024, when India’s foreign exchange kitty was at USD 704.89 billion.

For the latest reported week this month, the country’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 560.518 billion, up USD 9.652 billion.

 

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The RBI data showed that gold reserves currently stand at USD 117.454 billion, up USD 4.623 billion from the previous week 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 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, reserves rose by just over USD 20 billion, while in 2025, the forex kitty increased by about 56 billion, according to data.

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.