The share of gold in India’s total foreign exchange reserves more than doubled to 13.6% in September this year from early 2022 levels, as global gold prices touched record highs. Geopolitical uncertainty has driven gold prices due to its safe-haven status and the ability to remain a reliable store of value.
Conversely, the share of foreign currency assets in the country’s total foreign exchange reserves fell from 89.9% to 83.1%, the lowest ever. India’s forex reserves touched $702 billion in the week ending October 17 after falling to $694 billion in August this year. India’s forex reserves was at an all-time high of $705 billion in September last year.
