RBI: India's Forex Reserves Surge to $688.94 Billion, Gold Holdings Boost Growth

• India's foreign exchange reserves increased by nearly $1.7 billion in the week ending December 12.
• Total reserves reached $688.94 billion, equivalent to over 62 lakh crore rupees.
• Foreign currency assets rose by $910 million to $557.78 billion, while gold reserves increased by $760 million to $107.74 billion.
• SDR and the reserve position with the IMF also saw an increase during this period.
• Strong reserves provide protection against global shocks, cover over 10 months of imports, and enhance international confidence and credit ratings.

Why It Matters: India's forex reserves surged to $688.94 billion, primarily driven by a significant increase in gold holdings.