foreign currency reserves of india increased to 622 billion dollars this week mdn
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what are foreign exchange reserves
foreign exchange reserves (Foreign Exchange Reserves) is a financial quantity that shows the reserves of a country’s currency (foreign currency, such as dollars, euros, pounds, etc.). This foreign currency is obtained from various sources that are available to a country to complete its financial transactions or to keep its currency stable. The main utility of foreign exchange reserves is to ensure the financial stability and financial autonomy of the country. This can be useful as a hedge for occasions when a country faces a sudden change in the value of its currency or if foreign currency is needed in the financial markets during a financial crisis. In addition, foreign exchange reserves are also used as various guiding parameters, such as size of foreign exchange, portfolio of foreign exchange, utility construction of foreign exchange, etc. Public banks, institutional investors, other financial institutions, and government bodies commonly manage foreign exchange reserves.
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