India's foreign exchange reserves are continuously increasing, crossed the 600 billion dollar mark again in four months
Forex Reserve: After August 2023, the country's foreign exchange reserves have increased to $ 604 billion by December 1, 2023. Earlier, on August 11, 2023, India's foreign exchange reserves had crossed the $600 billion mark. Yesterday the RBI Governor said that the Indian currency Rupee has been more stable than other currencies. Read what is the complete news.
India's foreign exchange reserves are continuously increasing. After August 2023, on December 1, 2023, the country's forex reserve has increased to US $ 604 billion. Earlier on August 11, 2023, India's foreign exchange reserves had crossed the US $ 600 billion mark.
In October 2021, the country's foreign exchange reserves were at an all-time high of US $ 642 billion. India's forex reserves stood at US$597.935 billion in the week ended November 24.
Narrating the decisions taken at the MPC meeting yesterday, RBI Governor Shaktikanta Das said that despite rising US treasury yields and a strong US dollar, the Indian rupee has remained less volatile against emerging market economies (EMEs) in the calendar year 2023.
According to Shakkiant Das, foreign portfolio investment (FPI) inflow in 2023-24 has been $ 24.9 billion till December 6. Apart from this, Foreign Direct Investment (FDI) declined to US $ 10.4 billion in April-October 2023, from US $ 20.8 billion a year ago.
FPI i.e. Foreign Portfolio Investor invests in shares, bonds, mutual funds, etc. listed in the stock market of another country. These are investors who look to earn more profits in less time.
The meaning of foreign exchange reserves is clear from its name itself. This means storage of other country's currency. India's central bank i.e. RBI keeps money as well as other assets in Forex reserves so that loans can be repaid when needed.
Foreign exchange reserves are held in one or more currencies. Most foreign exchange reserves are held in dollars and some in euros.
