The forex reserves rose $1.05 billion to reach $630.607 billion for the week ended January 31, according to the Reserve Bank of India (RBI) data. Meanwhile, gold reserves went up by $1.242 billion to $70.893 billion during the week
The strategy of holding gold is primarily aimed at hedging against inflation and reducing foreign currency risks, especially in times of uncertainty triggered by geopolitical tensions
The NGTA, for which the RBI has invited bids from eligible vendors, would be supporting various transactions in asset classes like Fixed Income (FI), Forex (FX), Money Market (MM) and Gold.