Gold Price Surge Pushes India’s Forex Reserves to All-Time High Despite Dip in Foreign Currency Assets

Mumbai: A sharp rise in gold prices has delivered a major boost to India’s foreign exchange reserves, pushing the country’s forex stockpile to a new all-time high, even as foreign currency assets (FCA) registered a decline during the week.

According to the latest data released by the Reserve Bank of India (RBI) on Friday, India’s total foreign exchange reserves surged by a record $14.361 billion during the week ended January 30, 2026. This follows another strong rise of $8.053 billion in the previous week.

With this sharp jump, India’s forex reserves climbed to $723.774 billion, surpassing the earlier record of $709.413 billion recorded during the week ended January 23, 2026.

Forex Reserves Break Previous Record

The RBI data confirms that the country’s foreign exchange reserves have reached their highest level ever, largely supported by the massive increase in the valuation of gold holdings.

Market experts noted that such a sharp weekly rise is unusual and reflects the extraordinary rally in global gold prices, which has significantly lifted the value of India’s gold reserves.

Foreign Currency Assets (FCA) Decline

Despite the overall increase in reserves, India’s Foreign Currency Assets (FCAs)—which form the largest portion of forex reserves—declined during the same period.

• FCA fell by $493 million in the week ended January 30, 2026
• FCA had risen by $2.367 billion in the previous week
• FCA now stands at $562.392 billion

Foreign currency assets include holdings in major currencies such as the euro, pound, and yen, and their dollar valuation fluctuates due to exchange rate movements.

Gold Reserves Witness Massive Jump

The highlight of the RBI report was the dramatic rise in India’s gold reserve valuation.

• Gold reserves increased by $14.595 billion during the week
• In the previous week, gold reserves had risen by $5.635 billion
• The total value of gold reserves has now climbed to $137.683 billion

RBI data also indicates that India’s gold holdings have crossed 880 tonnes, accounting for nearly 15% of the country’s total foreign exchange reserves.

SDR Sees Marginal Increase

India’s Special Drawing Rights (SDR), held with the International Monetary Fund (IMF), also witnessed a slight rise.

• SDR increased by $216 million during the week
• It had risen by $33 million in the previous week
• SDR now stands at $18.953 billion

IMF Reserve Position Improves

India’s reserve position with the IMF also strengthened marginally.

• IMF reserve increased by $44 million
• Total IMF reserves now stand at $4.746 billion

Conclusion

The latest RBI data highlights how rising gold prices can play a crucial role in strengthening a nation’s reserve position. Even though foreign currency assets declined, the sharp surge in gold valuation ensured that India’s overall foreign exchange reserves rose dramatically, reaching a historic peak.

With global gold prices continuing to remain strong, analysts believe India’s forex reserves may stay well-supported in the near term.