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India’s foreign exchange reserves rose to a record high of ₹65.24 lakh crore ($709.41 billion) as of January 23, up from ₹63.73 lakh crore ($701.36 billion) a week earlier, according to data released by the Reserve Bank of India on Friday, January 30.
As of January 23, foreign exchange assets stood at ₹51.76 lakh crore ($562.89 billion), while gold holdings were valued at ₹11.32 lakh crore ($123.09 billion). Special drawing rights amounted to ₹1.72 lakh crore ($18.74 billion), and India’s reserve position with the IMF stood at ₹43,086 crore ($4.7 billion).
The increase of about ₹1.50 lakh crore ($8.05 billion) represents the highest level of reserves recorded so far, surpassing the previous peak of $704.89 billion set in September 2024.
The rise in reserves over the past two weeks reflects valuation gains from higher gold prices along with the central bank’s foreign currency swap operations to increase rupee liquidity in domestic markets.
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A higher reserve buffer strengthens the RBI’s ability to protect the rupee from excessive volatility and speculative pressure. Notably, the rupee has underperformed its emerging market peers this year amid equity outflows and delays in the US trade deal.
Analysts cited by Bloomberg said a rise in global gold prices had supported the overall reserves position, with the metal on track for its strongest monthly gain since 1982, up nearly 18% amid geopolitical tensions.
“The latest increase in reserves reflects the positive valuation impact of gold, but it also gives the RBI breathing room in an uncertain global environment,” Anubhuti Sahay, head of India economic research at Standard Chartered Bank, told Bloomberg. He said future accumulation of reserves will depend on rupee pressure and the size of RBI’s forward dollar book.
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