India's Forex Reserves Plunge by $6.7 Billion, Gold Holdings Decline

• India's foreign exchange reserves decreased by $6.711 billion to $717.064 billion in the week ending February 6.
• The decline was primarily due to a sharp fall in gold reserves, which dropped by $14.208 billion to $123.476 billion.
• Foreign Currency Assets (FCA) increased by $7.661 billion, reaching $570.053 billion during the same period.
• RBI stated that forex reserves are sufficient to cover over 11 months of imports, indicating a strong external sector.
• The RBI strategically manages the rupee's value by buying dollars when it strengthens and selling when it weakens.