India’s foreign exchange reserves jumped by USD 14.36 billion to a fresh all-time high of USD 723.77 billion in the week ended January 30, the Reserve Bank of India (RBI) said on Friday.
The latest increase follows a rise of USD 8.05 billion in the previous reporting week, which had taken the reserves to USD 709.41 billion, surpassing the earlier record of USD 704.89 billion achieved in September 2024.
According to the central bank’s data, foreign currency assets (FCAs) — the largest component of the reserves — declined by USD 493 million to USD 562.39 billion during the week. FCAs, expressed in dollar terms, reflect the impact of appreciation or depreciation of non-US currencies such as the euro, pound sterling and Japanese yen held in the reserve basket.
In contrast, the value of gold reserves surged by USD 14.59 billion to USD 137.68 billion, emerging as the primary driver behind the sharp overall increase in reserves.
The RBI data also showed that Special Drawing Rights (SDRs) rose by USD 216 million to USD 18.95 billion, while India’s reserve position with the International Monetary Fund (IMF) increased by USD 44 million to USD 4.75 billion during the reporting week.
Economists said the record-high reserve levels enhance India’s external sector resilience, strengthen its ability to manage currency volatility, and provide a buffer against global financial uncertainties. |
