India’s Foreign Exchange Reserves Surge to All-Time High of $709.4 Billion
Foreign currency and gold holdings push India’s reserve kitty to all-time high, strengthening external sector resilience
India, Jan 31 : India’s foreign exchange reserves hit a historic peak of USD 709.413 billion in the week ended January 23, according to the latest data from the Reserve Bank of India (RBI). The sharp rise of USD 8.053 billion was fueled by gains in both foreign currency assets (FCA) and gold reserves.
The largest component, foreign currency assets, climbed by USD 2.367 billion to reach USD 562.885 billion, while gold reserves surged by USD 5.635 billion to USD 123.088 billion. This marks a continuation of the upward trend in India’s forex kitty in recent weeks.
India’s previous all-time high of USD 704.89 billion was recorded in September 2024. The RBI has consistently maintained that the reserves are sufficient to cover more than 11 months of merchandise imports, reflecting the country’s strong external position.
In 2025 alone, India’s forex reserves have grown by around USD 56 billion, surpassing gains of USD 20 billion in 2024 and matching the robust additions seen in 2023, while reversing the USD 71 billion decline in 2022.
Forex reserves, held in major global currencies including the US dollar, Euro, Japanese yen, and Pound Sterling, allow the RBI to intervene strategically in the foreign exchange market. Buying dollars when the rupee strengthens and selling during weakness helps stabilize the currency and safeguard India’s external financing needs.
