NEW DELHI, India — India’s foreign exchange reserves surged by $14.167 billion to $701.36 billion for the week ended January 16, according to data released by the Reserve Bank of India on Friday.
The sharp increase follows a modest rise of $392 million in the previous week ended January 9, marking one of the largest weekly gains in recent months.
Foreign Currency Assets, the biggest component of the reserves, climbed by $9.65 billion to $560.51 billion during the reporting week. These assets reflect the value of major global currencies such as the euro, yen, and pound sterling, in addition to the U.S. dollar, expressed in dollar terms.
Gold reserves also recorded a significant increase, rising by $4.6 billion to $117.45 billion.
In contrast, the value of Special Drawing Rights slipped by $35 million to $18.70 billion, while India’s reserve position with the International Monetary Fund declined by $73 million to $4.684 billion.
India’s foreign exchange reserves had previously touched $702.25 billion on October 17, 2025. The country’s all-time high stands at $704.89 billion, recorded in September 2024.
Foreign exchange reserves are a key indicator of a country’s economic strength and play a critical role in maintaining currency stability. The reserves allow the central bank to intervene in currency markets to curb excessive volatility, particularly when the rupee faces downward pressure against the dollar.
A sustained rise in reserves also signals strong dollar inflows into the economy, supporting trade financing and improving overall financial resilience. The recent buildup comes amid steady capital inflows and a notable increase in foreign direct investment commitments during the current financial year. (Source: IANS)
