India’s Forex Reserves Hit Record High of USD 674.919 Billion
New Delhi [India], August 9: India’s foreign exchange reserves have reached a new all-time high. As of August 2, 2024, the reserves rose by USD 7.533 billion to USD 674.919 billion, according to the Reserve Bank of India (RBI).
The previous record was USD 670.857 billion. In 2024, the reserves have increased by about USD 45-50 billion cumulatively. These reserves help protect India’s economy from global economic changes.
The latest RBI data shows that India’s foreign currency assets (FCA), the largest part of the forex reserves, increased by USD 5.162 billion to USD 592.039 billion. Gold reserves also rose by USD 2.404 billion to USD 60.099 billion.
India’s forex reserves can now cover over 11 months of projected imports. In 2023, the RBI added about USD 58 billion to its reserves, while in 2022, the reserves fell by USD 71 billion due to higher import costs and RBI’s market interventions to stabilize the rupee.
Forex reserves are assets held by a nation’s central bank, usually in major currencies like the US Dollar, Euro, Japanese Yen, and Pound Sterling. The RBI monitors and intervenes in the forex market to maintain stability without targeting specific exchange rates.
Doubts Revealed
Forex Reserves -: Forex reserves are like a big savings account for a country, holding money in different currencies and gold to help in times of need.
USD 674.919 Billion -: This means that India has saved up 674.919 billion US dollars, which is a huge amount of money.
Reserve Bank of India (RBI) -: The RBI is like the main bank of India that controls all the other banks and manages the country’s money.
Foreign Currency Assets -: These are parts of the forex reserves that are held in different types of money from other countries.
Gold Reserves -: Gold reserves are the amount of gold that the country has saved up as part of its forex reserves.
Global Economic Fluctuations -: These are changes in the world’s economy that can affect how much things cost and how much money people have.
Projected Imports -: This means the amount of goods and services that India expects to buy from other countries in the future.