RBI MPC 2026: India’s forex reserves stand at $723.8 billion as on January end, Guv Malhotra says

India’s foreign exchange reserves climbed to $723.8 billion as of January 30, 2026, providing a robust merchandise import cover of more than 11 months, Reserve Bank of India chief Sanjay Malhotra said on Friday, adding that the central bank is confident of meeting its external financing requirements comfortably.

Governor Malhotra’s remarks come at a time when the Rupee is trading in a narrow range close to its all-time high of Rs 91.97 against the US dollar, largely supported by foreign banks’ dollar sales and ⁠traders cutting intraday short bets. As corporate India’s dollar demands continue to be high, the Indian currency closed at Rs 90.3550 per dollar, ‌up 0.1% on Thursday.

Also read: RBI GDP Growth 2026: Central bank nudges forecast higher, upgrades early FY27 outlook

The central bank has proposed to issue draft revised guidelines for Authorised Dealer banks and stand-alone primary dealers (SPDs), allowing them more flexibility in undertaking foreign exchange transactions.

India’s forex reserves have sharply risen in the last few weeks as RBI conducted forex swaps to infuse rupee liquidity into the ‌domestic markets and the value of its gold holdings rose.

India’s foreign exchange reserves stood at $701.4 billion as of January 16 2026, up from $668 billion as of the end of March 2025. As per the Economic Survey, the forex reserves are sufficient to cover around 11 months of goods imports and about 94 per cent of the external debt outstanding at the end of September 2025, providing a comfortable liquidity buffer.

As of January 23, the central bank’s gold holdings were valued at $123 billion. RBI has been actively intervening by selling US dollars to protect the Indian Rupee. The ‍impact of RBI’s dollar sales, however, has ‍been offset by the rising value of crucial ‌assets such as gold and due to longer-term forex swaps.The growing share of gold in reserves aligns with a broader international pattern where many emerging economies have increased gold holdings amid geopolitical uncertainty and shifts in the global interest-rate cycle.

Indian rupee depreciated by approximately 5.4 per cent against the US dollar between April 1, 2025 and January 15, 2026. The latest Economic Survey noted that currency performance is determined by the economy’s ability to generate domestic savings and sustain external balance. The currency status attracts stable FDI, and builds the country’s export competitiveness rooted in innovation, productivity, and quality.

Malhotra-led RBI closely monitors developments in the forex market and intervenes when necessary to maintain orderly conditions.