Mumbai, India | January 16, 2026
India’s foreign exchange reserves recorded a notable recovery after a steep decline last week, according to the latest data released by the Reserve Bank of India (RBI). For the week ending January 9, 2025, India’s total forex reserves rose by $392 million, reaching $687.19 billion.
The rebound comes after a major fall of $9.809 billion in the previous reporting week. Analysts say the recovery underscores India’s resilience on the external front despite global market volatility.
Gold Reserves Lead the Recovery
The primary driver of this week’s rise in reserves was the significant increase in the value of India’s gold holdings.
According to RBI:
-
Gold reserves surged by $1.568 billion, reaching $112.83 billion, the highest recorded level so far.
The uptick in gold valuation helped offset declines in other components and reflects rising global prices of precious metals. It also supports the RBI’s diversification strategy for strengthening reserve assets.
Foreign Currency Assets See a Decline
The largest component of forex reserves — Foreign Currency Assets (FCA) — posted a drop:
-
FCA fell by $1.124 billion, settling at $550.866 billion.
FCA fluctuations often reflect valuation changes in major global currencies such as the euro, pound sterling, and yen against the US dollar.
Other Components Also Decline
Small declines were recorded in other reserve categories:
-
Special Drawing Rights (SDR) with the IMF fell by $39 million to $18.739 billion.
-
India’s reserve position with the IMF declined by $13 million, standing at $4.758 billion.
Why the Rise in Forex Reserves Matters
With total reserves now above $687 billion, India maintains a strong external buffer capable of:
-
Protecting the rupee against global currency volatility
-
Strengthening import capacity
-
Enhancing confidence in India’s macroeconomic stability
Rising gold reserves signal improved global precious metal prices and validate the RBI’s strategy of maintaining diversified assets. However, the decline in FCA indicates continuing pressure from US dollar movements and cross-currency valuation shifts.
Overall, the rebound in reserves offers reassurance amid a complex global economic environment.
