India’s foreign exchange reserves surged by USD 14.167 billion to USD 701.360 billion in the week ended January 16, according to data released by the Reserve Bank of India (RBI). The sharp increase brings the country’s forex stockpile close to its all-time high of USD 704.89 billion, underscoring strengthening external buffers.
The rise was primarily driven by a significant increase in foreign currency assets (FCA) and gold reserves. Foreign currency assets, the largest component of the forex reserves, rose by USD 9.652 billion to USD 560.518 billion during the reported week.
Gold reserves also recorded a notable jump, increasing by USD 4.623 billion to USD 117.454 billion, reflecting valuation gains as well as accumulation. The latest data highlights India’s improved resilience against external shocks amid global economic uncertainties.
With reserves hovering near historic highs, India continues to maintain a strong position in terms of import cover and external sector stability, providing comfort to policymakers and investors alike.
