India has become the fourth economy in the world to surpass 700 billion US dollars in foreign reserves.
- India is only the fourth economy in the world to cross $700 billion in reserves after China, Japan, and Switzerland.
- India’s foreign exchange reserves surged by 12.588 billion dollars to touch a new all-time high of 704.885 billion dollars for the week ending September 27.
- The sharp increase in forex reserves strengthened India’s ability to cushion against global economic uncertainties and provides greater stability to its currency in the face of volatile international markets.
- According to the latest RBI data released on 5 October, foreign currency assets increased by $10.46 billion to $616 billion during the period due to revaluation gains and spot market dollar purchases by the RBI.
- India’s gold reserves rose 2.184 billion to 65.796 billion dollars.
- The special drawing rights with the International Monetary Fund increased by 8 million to 18.547 billion dollars.
India’s gross foreign exchange reserves
- India’s gross foreign exchange reserves comprise foreign currency assets of the Reserve Bank, gold held by RBI and Special Drawing Rights (SDRs) of the Government of India.
- India’s Reserve Position in the International Monetary Fund is not included as part of foreign exchange reserves as they may not be available on immediate demand, although some countries do include these balances as part of their reserves.
