India's Foreign Exchange Reserves Reach Record $709 Billion

India's foreign exchange reserves have reached an all-time high of $709.41 billion as of January 23, 2026, following an increase of $8.053 billion during the previous week. This significant rise is attributed to various factors monitored by the Reserve Bank of India (RBI), which plays an active role in ensuring market stability.

The previous week's figures were equally impressive, with reserves having increased by $14.167 billion, reaching $701.36 billion. Prior to this latest record, India's forex reserves peaked at $704.89 billion in September 2024 but faced pressures in subsequent months as the Indian rupee experienced volatility. The RBI has intervened in the currency market to manage fluctuations and maintain stability.

A breakdown of the current reserves shows that a substantial portion, $562.885 billion, is held in foreign currency assets. These assets are affected by movements in international currencies, including the euro, British pound, and Japanese yen, thereby influencing their dollar valuation. Furthermore, the value of gold reserves has risen significantly, increasing by $5.635 billion to reach a total of $123.088 billion.

The Special Drawing Rights (SDRs), which provide liquidity to the global economy through the International Monetary Fund, saw a minor rise of $33 million, bringing the total to $18.737 billion. Additionally, India’s reserve position with the IMF also experienced an increase, up by $18 million to a total of $4.703 billion, as reported by the RBI.

The growth in India's foreign exchange reserves is seen as a stabilising factor in the face of global economic uncertainties, providing a buffer against external shocks and enhancing the country’s financial credibility on the international stage. Experts suggest that a robust reserve position not only strengthens the domestic currency but also enhances investor confidence in the economy.

In light of these developments, the RBI continues to emphasise its commitment to maintaining a stable foreign exchange environment and addressing any imbalances that may arise in the currency market. The recent boost in forex reserves is expected to have lasting implications for India’s economic future.