India’s Forex Reserves Hit Record High of USD 683.987 Billion
New Delhi [India], September 6: India’s foreign exchange reserves have reached a new record high of USD 683.987 billion, increasing by USD 2.299 billion during the week ending on August 30, according to the Reserve Bank of India (RBI).
The previous record was USD 681.688 billion. In 2024 alone, the reserves have risen by over USD 60 billion cumulatively. This buffer helps insulate domestic economic activity from global shocks.
According to the latest data from the RBI, India’s foreign currency assets (FCA), the largest component of forex reserves, rose by USD 1.485 billion to USD 599.037 billion. Gold reserves during the week increased by USD 862 million, bringing the total to USD 61.859 billion.
India’s foreign exchange reserves are now sufficient to cover about a year of projected imports. In 2023, India added about USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022.
Forex reserves are assets held by a nation’s central bank or monetary authority, generally 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, aiming to contain excessive volatility in the exchange rate.
Doubts Revealed
Forex Reserves -: Forex reserves are the money or other assets held by a country’s central bank to pay for its international trade and to help manage the country’s currency.
USD 683.987 Billion -: USD 683.987 billion means 683.987 billion US dollars. A billion is a thousand million, so this is a very large amount of money.
Reserve Bank of India -: The Reserve Bank of India (RBI) is the central bank of India. It manages the country’s currency and monetary policy.
Foreign Currency Assets -: Foreign currency assets are the reserves held in different foreign currencies like US dollars, Euros, etc. They are part of the total forex reserves.
Gold Reserves -: Gold reserves are the amount of gold held by the central bank. It is part of the country’s total forex reserves.
Global Shocks -: Global shocks are unexpected events that affect the world economy, like financial crises or natural disasters. Forex reserves help protect the economy from these shocks.
Projected Imports -: Projected imports are the estimated amount of goods and services a country expects to buy from other countries in the future.
