RBI's gold holdings has increased by 125.6 tonnes in the last two years, making India the world's ninth-largest gold reserve holder
The country's gold reserves increased by $192 million to $37.44 billion. India's reserve position with the IMF rose by $14 million to $5.11 billion
Foreign currency assets declined by $3.365 billion to $573.009 billion
A returning non-resident Indian can open a foreign currency account with a bank, but one cannot transfer money from India to these accounts
Foreign currency assets surged by $748 million to $566.988 billion, as per weekly data by the Reserve Bank of India
The foreign currency assets, a major component of the overall reserves, declined by $1.918 billion to $561.540 billion for the reporting week
Though higher reserves help in cushioning domestic economy from external shocks, we must be mindful of the opportunity costs associated with them
Economists, however, warn that high foreign exchange build up may not always be an unmixed blessing for the economy
