India’s Foreign Exchange Reserves Hit Record High
India’s foreign exchange reserves have reached a new record high of USD 670.857 billion as of July 19, 2024, according to the Reserve Bank of India (RBI). This is an increase of USD 4.19 billion from the previous week, which had a high of USD 666.85 billion.
In 2024, the reserves have grown by about USD 45-50 billion. The largest component of these reserves, foreign currency assets (FCA), rose by USD 2.578 billion to USD 588.048 billion. Additionally, gold reserves increased by USD 1.329 billion to USD 59.992 billion.
These reserves are sufficient to cover over 11 months of projected imports. In 2023, the RBI added about USD 58 billion to its foreign exchange reserves, while in 2022, the reserves had decreased by USD 71 billion.
Foreign exchange reserves are assets held by a nation’s central bank, usually in reserve currencies like the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI monitors the foreign exchange markets and intervenes to maintain orderly market conditions and contain excessive volatility in the exchange rate.
Doubts Revealed
Foreign Exchange Reserves -: Foreign exchange reserves are assets held by a country’s central bank in foreign currencies. These can include foreign banknotes, deposits, bonds, and other financial assets.
USD -: USD stands for United States Dollar, which is the currency of the United States. It is often used in international trade and finance.
Reserve Bank of India (RBI) -: The Reserve Bank of India (RBI) is the central bank of India. It manages the country’s currency, money supply, and interest rates.
Foreign Currency Assets -: Foreign currency assets are part of the foreign exchange reserves and include investments in foreign currencies, such as US dollars, euros, and yen.
Gold Reserves -: Gold reserves are the amount of gold held by a country’s central bank. They are part of the foreign exchange reserves and can be used in times of financial need.
Imports -: Imports are goods and services that a country buys from other countries. For example, India imports oil, electronics, and machinery from other countries.
