India’s foreign exchange reserves rose sharply by USD 14.167 billion to USD 701.360 billion in the week ended January 16, according to RBI data, driven by higher foreign currency assets and rising gold reserves amid global uncertainty.

BulletsIn

• India’s foreign exchange reserves increased significantly in a single week, reflecting strong inflows and improved confidence in the country’s external economic position.

• Total forex reserves are now hovering close to the all-time high of USD 704.89 billion recorded in September 2024.

• Foreign currency assets, the largest component of forex reserves, rose by USD 9.652 billion to USD 560.518 billion.

• Gold reserves increased by USD 4.623 billion, supported by rising global gold prices and strong investor demand.

• The Reserve Bank of India stated that current reserves can comfortably cover more than eleven months of merchandise imports.

• India’s forex reserves have shown a steady upward trend over recent weeks, reversing earlier volatility pressures.

• In the current year 2025, foreign exchange reserves have already increased by approximately USD 56 billion.

• RBI continues active intervention in the forex market to manage rupee volatility through strategic dollar buying and selling.

• A strong reserve position enhances India’s resilience against global financial shocks and external financing risks.