India's forex reserves rise by $1.7B to $690B
What's the story
India's foreign exchange reserves have witnessed a major jump of $1.68 billion, hitting the mark of $688.94 billion, according to the latest data from the Reserve Bank of India (RBI). The increase is mainly attributed to an expansion in gold holdings and a slight rise in foreign currency assets (FCAs). Gold reserves saw a significant boost, indicating a strategy of diversification amid global economic uncertainties.
FCA growth
Foreign currency assets see marginal increase
The FCAs, which make up the bulk of India's forex reserves, saw a marginal rise of $0.91 billion during the week. This brought their total to $557.79 billion. The change in these assets takes into account the appreciation or depreciation of non-US currencies such as the euro, pound, and yen that India holds in its reserves.
Gold boost
India's gold reserves surge significantly
India's gold reserves witnessed a major spike of $0.76 billion, taking their total to a whopping $107.74 billion. The steady increase in these reserves highlights the RBI's strategy of diversifying its assets amid global economic uncertainties. Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) also saw a slight rise of $0.01 billion during this period, bringing their total to $18.74 billion.
IMF reserves
Reserve position in IMF rises marginally
Along with the increase in gold holdings and FCAs, India's reserve position in the IMF also rose slightly by $0.01 billion. This brought its total to $4.69 billion during the week ending December 12. The rise further highlights India's strategy of maintaining a diversified portfolio amid global economic uncertainties and fluctuations in currency values.