India's forex reserves rise by $390M to $690B
What's the story
India's foreign exchange reserves have witnessed a significant increase of $392 million, reaching a total of $687.19 billion as of January 9, 2026. The data was released by the Reserve Bank of India (RBI) on January 16, 2026. This comes after a major decline in the previous week when the reserves had dropped sharply by $9.809 billion to stand at $686.801 billion, according to central bank data.
Reserve breakdown
Foreign currency assets and gold reserves
The RBI data also revealed that foreign currency assets (FCAs), which constitute a major portion of the reserves, fell by $1.124 billion during the reported week to $550.87 billion. In dollar terms, FCAs include both valuation changes and the impact of appreciation or depreciation of non-US currencies such as euro, pound sterling, and yen held in the reserve basket. Meanwhile, gold holdings rose by $1.568 billion to reach $112.83 billion over this period.
Market intervention
RBI's role in maintaining forex market stability
The RBI plays a crucial role in monitoring the foreign exchange market and intervening when necessary to maintain orderly conditions. These interventions are aimed at preventing excessive volatility in the rupee and are not related to defending any particular exchange rate level or band. The central bank's actions are aimed at ensuring market stability, which is essential for India's economic health.
Reserves adequacy
India's forex reserves cover over 11 months of imports
Post the last monetary policy review meeting, the RBI had stated that India's foreign exchange reserves are enough to cover more than 11 months of merchandise imports. This highlights the strength and resilience of India's external sector. The central bank is confident it can easily meet external financing needs, further bolstering confidence in the country's economic stability amid global uncertainties.