Forex Watch: India’s Foreign Exchange Reserves Hit Record High Ahead of Budget 2026

Mumbai: India’s foreign exchange reserves have surged to an all-time high just ahead of the Union Budget 2026, breaking previous records and giving a major boost to the government’s economic confidence.

According to the Reserve Bank of India (RBI), during the week ending 23 January 2026, the country’s forex reserves rose by $8.053 billion, taking the total reserves to $709.413 billion. This comes on the back of a $14.17 billion increase the previous week. The earlier record of $704.885 billion, set in the week ending 27 September 2024, has now been surpassed. Gold accounted for the largest share of this surge.

Foreign Currency Assets (FCA) See Strong Growth
RBI data also showed a significant rise in India’s Foreign Currency Assets, a key component of the total reserves. During the week ending 23 January 2026, FCA increased by $2.367 billion, bringing the total FCA to $562.885 billion. These assets include holdings in major currencies like the Euro, Pound, and Yen, along with US dollars, and reflect the fluctuations in global exchange rates.

Gold Reserves Climb
India’s gold reserves also saw substantial growth. In the same week, the value of RBI’s gold holdings increased by $5.635 billion, following a $4.623 billion rise the previous week. The total gold reserve now stands at $123.088 billion, with physical holdings exceeding 880 tons, accounting for roughly 15% of India’s total forex reserves.

SDR and IMF Holdings Rise Moderately
Special Drawing Rights (SDRs) recorded a minor increase of $33 million during the week, taking the total to $18.737 billion, after a $39 million decline the previous week. Meanwhile, India’s IMF reserve assets increased by $18 million, bringing the total to $4.703 billion.

This record surge in forex reserves reflects strong global capital inflows, robust trade performance, and growing investor confidence in India’s economic stability—good news as the government prepares to present Budget 2026 tomorrow.