The Reserve Bank of India is strategically shifting its foreign exchange reserve strategy, favoring increased gold reserves over US Treasury bills. This move aligns with a global trend of diversifying away from the US dollar amidst geopolitical uncertainties. While India’s US T-bill holdings have decreased, gold reserves have increased, reflecting a broader diversification in forex currency assets.
Indian investors double down on global assets as LRS equity outflows surge 100%: Dr. Karthik S of Entrust Family Office
Indian investors are increasingly prioritizing global diversification, with capital-led overseas investments in equity and debt more than doubling year-on-year. This strategic shift reflects growing portfolio