The most positive aspect of the week was the sharp increase in gold reserves. According to the RBI, gold reserves increased by $1.568 billion to reach $112.83 billion.

India's Forex Reserve: This news comes amid global tensions and long-running trade deal negotiations with the US. The Reserve Bank of India (RBI) reported on Friday that India's foreign exchange reserves increased by $392 million to $687.19 billion in the week ended January 9. The country's total foreign exchange reserves had declined by $9.809 billion to $686.80 billion in the previous reporting week.

Decline in foreign currency assets

According to RBI data, Foreign Currency Assets (FCA), the largest component of the foreign exchange reserves, declined by $1.124 billion to $550.866 billion during this period.

Foreign currency assets expressed in dollar terms also include the effect of fluctuations in the value of non-US currencies such as the euro, pound, and yen.

Strong jump in gold reserves

The most positive aspect of the week was a sharp increase in gold reserves. According to the RBI, gold reserves increased by $1.568 billion to reach $112.83 billion. Special Drawing Rights (SDRs) declined by $39 million to $18.739 billion.

Meanwhile, India's reserve position with the International Monetary Fund (IMF) declined by $13 million to $4.758 billion. Although foreign currency assets declined, a strong increase in gold reserves led to an increase in total foreign exchange reserves. Amid global volatility, India's strong foreign exchange reserves reflect the country's economic stability and ability to withstand external shocks.