India’s forex reserves jump $4.36 billion to $693.3 billion as gold holdings surge

In the previous week, the overall forex kitty had grown by a more modest $1.689 billion to $688.949 billion.

• India's forex reserves increased by $4.37B to $693.32B as of Dec 19.
• Gold reserves jumped $2.62 billion to $110.37 billion, boosting overall reserves
• Reserves cover 11+ months of imports, indicating strong external sector resilience.

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India’s foreign exchange reserves rose sharply by $4.368 billion to $693.318 billion in the week ended December 19, latest data released by the Reserve Bank of India showed.

The increase was driven largely by a strong rise in gold reserves, which jumped $2.623 billion to $110.365 billion during the week. In the previous week, the overall forex kitty had grown by a more modest $1.689 billion to $688.949 billion.

Foreign currency assets, the biggest component of the reserves, increased by $1.641 billion to $559.428 billion, according to the RBI’s Weekly Statistical Supplement. These assets reflect valuation changes due to movements in non-US currencies such as the euro, pound and yen.

Special Drawing Rights edged up by $8 million to $18.744 billion, while India’s reserve position with the International Monetary Fund rose by $95 million to $4.782 billion.

Gold prices have remained on an upward trend in recent months amid heightened global uncertainty and strong investment demand, boosting the value of India’s gold reserves.

After its latest monetary policy review, the RBI said India’s forex reserves were sufficient to cover more than 11 months of merchandise imports, underscoring the resilience of the country’s external sector. The central bank also noted that India remains well-positioned to meet its external financing needs.

India added around $58 billion to its forex reserves in 2023, after a cumulative decline of $71 billion in 2022. In 2024, reserves rose by just over $20 billion, while so far in 2025, the forex kitty has grown by an estimated $47–48 billion.

Foreign exchange reserves are assets held by a country’s central bank, mainly in reserve currencies such as the US dollar, along with holdings in the euro, Japanese yen, pound sterling and gold.

*With ANI inputs