India’s forex reserves increased by $392 million to $687.19 billion during the week ended January 9, the Reserve Bank of India said on Friday. In the previous reporting week, the overall kitty had dropped
by $9.809 billion to $686.80 billion.
For the week ended January 9, foreign currency assets, a major component of reserves, decreased by $1.124 billion to $550.866 billion, the central bank’s data 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.
Value of the gold reserves jumped by $1.568 billion to $112.83 billion during the week, the RBI said.
The Special Drawing Rights (SDRs) were down by $39 million to $18.739 billion, the apex bank said.
India’s reserve position with the IMF was down by $13 million to $4.758 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.
(With inputs from agencies)
