India's forex reserves rise over $14 billion to $701 billion as of January 16

Over the past few weeks, the forex kitty has been largely in an uptrend.

The country's foreign exchange (forex) kitty has been hovering near its all-time high of USD 704.89 billion, set in September 2024.

For the reported week (that ended January 16), India's foreign currency assets (FCA), the largest component of foreign exchange reserves, stood at USD 560.518 billion, up USD 9.652 billion.

The RBI data showed that gold reserves currently stand at USD 117.454 billion, up USD 4.623 billion from the previous week.

The price of the safe-haven asset gold has been on a sharp uptrend over recent months, perhaps amid heightened global uncertainties and robust investment demand.

After the latest monetary policy review meeting in early December, the RBI had said that the country's foreign exchange reserves were sufficient to cover more than 11 months of merchandise imports.

Overall, India's external sector remains resilient, and the RBI is confident it can comfortably meet external financing requirements.

In 2025, the forex kitty has increased by about 56 billion, according to data.

In 2024, reserves rose by just over USD 20 billion.

In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022.

Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US dollar, with smaller portions in the Euro, Japanese yen, and Pound Sterling.

The RBI often intervenes by managing liquidity, including selling dollars, to prevent a steep depreciation of the rupee. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens. (ANI)