India’s forex reserves hit fresh all-time high of $723.8 billion

India’s foreign exchange reserves surged to a fresh all-time high in the week ended January 30, according to the latest data released by the Reserve Bank of India (RBI).

The country’s forex reserves jumped by USD 14.361 billion during the week to USD 723.774 billion, largely driven by a sharp rise in gold reserves, even as foreign currency assets (FCA) declined.

Add Zee Business as a Preferred Source

New peak surpasses previous record

This marked the highest level ever recorded, surpassing the previous peak of USD 709.403 billion achieved in the preceding week. India’s forex reserves have remained on an upward trajectory over the past few weeks.

Foreign currency assets decline

For the reported week, which ended January 30, foreign currency assets, the largest component of the reserves, stood at USD 562.392 billion, registering a decline of USD 493 million, the RBI data showed.

Gold reserves surge sharply

In contrast, gold reserves rose sharply to USD 137.683 billion, reflecting a week-on-week increase of USD 14.595 billion.

Reserves adequate to cover over 11 months of imports

Following its monetary policy review in early December, the RBI had said that India’s foreign exchange reserves were adequate to cover more than 11 months of merchandise imports, underlining the strength of the country’s external sector.

External sector remains resilient

Overall, India’s external position remains resilient, with the central bank expressing confidence in its ability to comfortably meet the nation’s external financing requirements.

Forex reserves have risen sharply in recent years

In 2025 so far, India’s forex reserves have increased by around USD 56 billion, according to official data. This follows a rise of just over USD 20 billion in 2024 and an addition of about USD 58 billion in 2023, after a cumulative decline of USD 71 billion in 2022.

What are foreign exchange reserves?

Foreign exchange reserves are assets held by a country’s central bank, primarily in reserve currencies such as the US dollar, with smaller holdings in the euro, Japanese yen, and pound sterling.

How the RBI manages forex market liquidity?

The RBI actively manages liquidity in the forex market to curb excessive volatility in the rupee. It typically buys dollars when the rupee is strong and sells dollars to prevent sharp depreciation when the currency weakens.

With agency inputs