“India’s Forex Reserves Rise to $687.2 Billion, Gold Holdings Up $1.56 Billion”

India’s Forex Reserves Rise $392 Million to $687.19 Billion; Gold Holdings Up $1.57 Billion.

India’s foreign exchange reserves increased by $392 million to $687.19 billion in the week ending January 9, according to the Reserve Bank of India (RBI). This comes after a $9.81 billion decline in the previous week, when the overall reserves had fallen to $686.80 billion.

Breaking down the components, foreign currency assets—the largest part of the reserves—declined by $1.124 billion to $550.87 billion. These assets, denominated in currencies such as the euro, pound, and yen, reflect fluctuations in exchange rates.

Gold reserves, however, rose sharply by $1.568 billion to $112.83 billion, reflecting heightened global uncertainties and strong investor demand for the safe-haven asset. Special Drawing Rights (SDRs) dipped by $39 million to $18.739 billion, while India’s reserve position with the IMF fell $13 million to $4.758 billion.

The RBI has noted that India’s forex reserves remain sufficient to cover over 11 months of merchandise imports, highlighting the country’s resilient external sector. In 2023, India added roughly $58 billion to its reserves after a $71 billion decline in 2022. In 2024, reserves rose by just over $20 billion, and in 2025 so far, the kitty has grown by around $47-48 billion.

Foreign exchange reserves are key assets held by a nation’s central bank in foreign currencies, including the US dollar, euro, Japanese yen, and pound sterling, used to support the economy and meet external obligations.