India’s forex reserves hit record high of $709.4 billion

India’s foreign exchange reserves reached a new all-time high in the week ended January 23, according to the Reserve Bank of India‘s latest data. Foreign exchange reserves rose sharply by $8.053 billion in the week to $709.413 billion, driven by a jump in both gold reserves and foreign currency assets.

Over the past few weeks, the forex kitty has been largely in an uptrend. Its previous high was $704.89 billion, touched in September 2024. For the reported week (that ended January 23), India’s foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at $562.885 billion, up $2.367 billion.

The RBI data showed that gold reserves currently stand at $123.088 billion, up $5.635 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 $20 billion. In 2023, India added around $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $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.

Published on January 31, 2026