India's Forex Reserves Soar to $688.94 Billion, Driven by Gold & FCAs: RBI

• India's forex reserves rose by $1.68 billion to $688.94 billion in the week ended December 12, as per RBI data.
• The increase was primarily driven by a $0.76 billion rise in gold reserves, reaching $107.74 billion.
• Foreign Currency Assets (FCAs), the largest component, grew by $0.91 billion to $557.79 billion.
• Special Drawing Rights (SDRs) and India's reserve position with the IMF saw marginal increases of $0.01 billion each.
• RBI's strategy aims to strengthen external buffers and diversify reserve assets amidst global economic uncertainty.

Why It Matters: India's forex reserves hit $688.94 billion, boosted by gold and FCAs, strengthening external buffers.