India’s Forex Reserves Hit Record High of USD 689.235 Billion
New Delhi [India], September 13: India’s foreign exchange reserves have reached a new record high of USD 689.235 billion, increasing by USD 5.248 billion during the week ending on September 6, 2024. This information was released by the Reserve Bank of India (RBI) on Friday.
The previous record was USD 683.987 billion. In 2024 alone, the reserves have risen by over USD 65 billion. This buffer of foreign exchange reserves helps protect the domestic economy from global shocks.
According to the latest data from the RBI, India’s foreign currency assets (FCA), the largest part of the forex reserves, rose by USD 5.107 billion to USD 604.144 billion. Gold reserves also increased by USD 129 million, bringing the total to USD 61.988 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 reserves, in contrast to a decline of USD 71 billion in 2022.
Forex 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, aiming to contain excessive volatility in the exchange rate.
Doubts Revealed
Forex Reserves -: Forex reserves are like a big savings account for a country, holding money in different currencies like dollars, euros, and gold. It helps the country buy things from other countries and keeps the economy stable.
USD 689.235 Billion -: This means that India’s savings in foreign money and gold are worth 689.235 billion US dollars. A billion is a thousand million, so it’s a very big number!
Reserve Bank of India -: The Reserve Bank of India (RBI) is like the country’s main bank. It manages all the money and financial rules in India to keep the economy running smoothly.
Foreign Currency Assets -: These are parts of the forex reserves that are held in different types of money from other countries, like US dollars or euros. It helps India trade with other countries.
Gold Reserves -: Gold reserves are the amount of gold that the country keeps as part of its savings. Gold is valuable and can be used in times of need.
Global Shocks -: Global shocks are unexpected events that can affect the whole world’s economy, like a big financial crisis or a sudden increase in oil prices. Having good forex reserves helps India handle these surprises better.
Projected Imports -: Projected imports are the things that India plans to buy from other countries in the future. Having enough forex reserves means India can pay for these imports without any trouble.
