India's Forex Reserves Soar to $693.3 Billion as Gold Holdings Surge

• India's foreign exchange reserves jumped by $4.36 billion to $693.3 billion in the week ending December 19.
• The significant increase was primarily driven by a $2.623 billion surge in gold reserves, reaching $110.365 billion.
• Foreign currency assets, the largest component, also rose by $1.641 billion to $559.428 billion.
• RBI states reserves cover over 11 months of imports, highlighting the country's external sector resilience.
• The rise in gold prices due to global uncertainty and investment demand contributed to the increased value of gold holdings.

Why It Matters: India's robust forex reserves, boosted by gold, strengthen its economic stability and import cover.