Forex reserves accelerated to all-time high this week. This week, foreign exchange reserves rose by $ 835 million and reached a new high of $ 612.73 billion.
Reached a new high of $612.73 billion.
India Forex reserves: The country’s foreign exchange reserves increased by $ 835 million to a record high of $ 612.73 billion in the week ended July 16, 2021. According to the data of the Reserve Bank of India, in the previous week ended July 9, foreign exchange reserves had increased by $ 1.883 billion to $ 611.895 billion.
According to the weekly data of the Reserve Bank, the reason for the increase in foreign exchange reserves in the reporting week is the increase in foreign currency assets, which is a major component of the overall reserves. During this period, FCA increased by $ 463 million to $ 568.784 billion. Foreign currency assets, expressed in dollar terms, also include the effect of an increase or decrease in the value of other foreign currencies such as the euro, pound and yen held in foreign exchange reserves.
Gold reserves rise by $377 million
According to the data, during this period, gold reserves increased by $ 377 million to $ 37.333 billion. At the same time, the Special Drawing Rights (SDR with IMF) with the International Monetary Fund increased by $ 1 million to $ 1.548 billion. The Reserve Bank said that during the week under review, India’s foreign exchange reserves with the IMF declined by $ 7 million to $ 5.1 billion.
Foreign exchange reserves necessary for economy support
According to the Bloomberg report, 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 the credit rating and this will also strengthen investor sentiment. The Indian economy is currently welcoming investors with open arms.
India able to import for 15 months
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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