India’s foreign exchange (forex) reserves jumped $3.293 billion to $696.61 billion in the week to December 26, according to the latest RBI data. Value of the gold reserves increased $2.956 billion to $113.32 billion during the week.
The overall kitty had increased by $4.368 billion to $693.318 billion in the previous reporting week.
For the week ended December 26, foreign currency assets, a major component of the reserves, increased by $184 million to $559.612 billion, the data released by the central bank showed.
Expressed in dollar terms, the foreign currency assets include the effects of appreciation or depreciation of non-US units, such as the euro, pound, and yen, held in the foreign exchange reserves.
The Special Drawing Rights (SDRs) were
up by $60 million to $18.803 billion, the apex bank said.
India’s reserve position with the IMF was up by $93 million to $4.875 billion in the reporting week, according to the apex bank’s data.
The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.
After the last monetary policy review meeting, 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 $58 billion to its foreign exchange reserves, contrasting with a cumulative decline of $71 billion in 2022. In 2024, reserves rose by just over $20 billion. So far in 2025, the forex kitty has increased by about $47-48 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.
/images/ppid_a911dc6a-image-176787453851522566.webp)
/images/ppid_a911dc6a-image-176787457316797557.webp)
