The reason for the increase in currency reserves for the week ended July 9 is foreign currency assets (FCA). It has a major share in the total currency reserves of RBI. FCA rose by $1.297 billion to $568.285 billion.
Foreign exchange reserves at a historical level of $ 611.895 billion.
India forex reserves: The country’s foreign exchange reserves increased by $ 1.883 billion to a record $ 611.895 billion in the week ended July 9. According to the RBI data released on Friday, the currency reserves had increased by $ 1.013 billion to $ 610.012 billion in the week ended July 2. The reason for the increase in currency reserves for the week ended July 9 is foreign currency assets (FCA).
It has a major share in the total currency reserves of RBI. FCA rose by $1.297 billion to $568.285 billion. Gold reserves increased by $ 584 million to $ 36.956 billion in the week under review. The Special Drawing Rights (SDR) that is deposited with the International Monetary Fund (IMF) has remained unchanged at $1.547 billion. India’s reserve position with IMF has increased by $3 million to $5.107 billion.
This is necessary for the strength of the economy and for imports
According to economic experts, foreign exchange reserves are very important for the Indian economy. Economic experts say that the Reserve Bank of India is continuously depositing money and FDI coming in the stock market in its contingency fund. This is necessary for the economy of the country amid the Corona crisis. If RBI has sufficient reserves, there will be a positive impact on credit rating and this will also strengthen investor sentiment. The Indian economy is currently welcoming investors with open arms.
India ready for 15 months import
At present, India is capable of importing for 15 months. Japan has 22 months of reserves. India has the largest foreign exchange reserves after China, Japan, Switzerland and Russia. Switzerland has the ability to import up to 39 months. Economic experts say that when the country’s economy comes out of the Corona crisis, then imports will increase and for that time this fund is very important.
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