India's Forex Reserves Soar to $696.61 Billion; Gold Holdings Jump $2.9 Billion

• India's foreign exchange reserves increased by $3.293 billion, reaching $696.61 billion in the week to December 26.
• Gold reserves saw a significant rise of $2.956 billion, totaling $113.32 billion, driven by global uncertainties and investment demand.
• Foreign currency assets, a major component, grew by $184 million to $559.612 billion.
• The RBI states reserves are sufficient to cover over 11 months of merchandise imports, indicating a resilient external sector.
• India added approximately $58 billion to its forex reserves in 2023, a strong recovery from a $71 billion decline in 2022.

Why It Matters: India's forex reserves hit a new high, bolstered by gold and currency assets, ensuring economic stability.