India's Forex Reserves Soar Past $701 Billion, Nearing All-Time High

• India's foreign exchange reserves surged by USD 14.167 billion to USD 701.360 billion as of January 16.
• The significant rise was driven by increases in both foreign currency assets (FCA) and gold reserves.
• FCA, the largest component, grew by USD 9.652 billion to USD 560.518 billion, while gold reserves increased by USD 4.623 billion to USD 117.454 billion.
• The forex kitty is now close to its all-time high of USD 704.89 billion, recorded in September 2024.
• The Reserve Bank of India (RBI) states that current reserves can cover over 11 months of merchandise imports, indicating a resilient external sector.

Why It Matters: India's forex reserves have significantly increased, nearing a record high, bolstering economic stability.