India’s forex reserves: The country’s foreign exchange reserves increased by $ 1.091 billion to $ 585.334 billion in the week ended 22 January. This information has been given in the data released on Friday by the Reserve Bank. Earlier, in the week ended 15 January, foreign exchange reserves had decreased by $ 1.839 billion to $ 584.242 billion. Foreign currency reserves stood at an all-time high of $ 586.082 billion for the week ended January 8.
According to data released by the Reserve Bank of India (RBI), the increase in foreign exchange assets (FCA) in the reporting period led to an increase in the currency reserves. Foreign currency assets constitute a significant part of the total foreign exchange reserves. According to the Reserve Bank’s weekly data, the FCA increased by $ 68.5 million to $ 542.192 billion in the reporting period. The FCA is denominated in dollars, but includes other foreign currency assets such as the euro, pound and yen.
Gold reserve value also increased
According to the data, the value of the country’s gold reserves rose by $ 398 million to $ 36.459 billion during the week ended 22 January. The special drawing rights received by the country in the International Fund for Money (IMF) increased by $ 1 million to $ 1.513 billion, while the reserve reserves with the IMF also increased by $ 7 million to $ 5.171 billion.
India has strong payment capability
According to the data of Economic Survey 2020-21, India’s foreign exchange reserves are currently $ 58424 million (Rs 42,56,758 crore). This figure is till 15 January 2021. In comparison, India’s foreign exchange reserves which are India’s total foreign debt (including private sector debt) are $ 55620 million (Rs 4052459.30 crore) (September 2020). India’s huge foreign exchange reserves reflect the country’s payment potential. According to the Economic Survey, India is like a company whose debt is negative and its ability to pay is zero.