India’s Forex Reserves Rise By $1.05 Billion To $630.6 Billion

India’s foreign exchange reserves rose by $1.05 billion, reaching a total of $630.607 billion for the week ending January 31, 2025, according to data released by the Reserve Bank of India (RBI) on Friday.

This marks the second consecutive week of an increase in India’s forex reserves, following a rise of $5.574 billion to $629.557 billion in the previous week. Despite this recent upward trend, reserves had been on a declining trajectory for several weeks, primarily due to the revaluation of reserves and interventions by the RBI in the forex market to stabilize the rupee and reduce its volatility.

Impact Of Foreign Currency Assets And Gold Reserves

For the week ending January 31, foreign currency assets, which form a major part of India’s reserves, saw a decline of $207 million, reaching $537.684 billion. This drop reflects changes in the value of non-US currency units, such as the euro, pound, and yen, within the foreign exchange reserves.

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In contrast, India’s gold reserves increased by $1.242 billion to $70.893 billion during the same week, bolstering the overall reserves.

India’s Special Drawing Rights (SDRs) saw a modest rise of $29 million, reaching $17.889 billion. However, the country’s reserve position with the International Monetary Fund (IMF) dipped by $14 million, bringing it to $4.141 billion for the week.

India’s forex reserves had peaked at an all-time high of $704.885 billion in late September 2024. The recent changes in reserves reflect the ongoing adjustments in global markets and the country’s efforts to manage economic stability in the face of global challenges.