Foreign Exchange Reserves: India’s foreign exchange reserves cross 600 billion dollars for the first time, know how it became possible
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Foreign Exchange Reserves: India’s foreign exchange reserves have increased to US $ 604 billion on December 1. For the first time in four months, foreign exchange reserves have crossed 600 billion dollars. Earlier on August 11 this year, the foreign exchange reserves were above 600 billion dollars.
Reserve Bank of India Governor Shaktikanta Das, while announcing the bi-monthly monetary policy for December on Friday, said that India’s foreign exchange reserves were $ 604 billion as on December 1, 2023. With this we can easily meet our external financing needs. Earlier, the foreign exchange reserves at the end of November 24 were 597.93 billion dollars.
In October 2021, the country’s foreign exchange reserves reached an all-time high of $642 billion. After this, the central bank used this reserve to protect the rupee from pressure due to global developments since last year, which led to a reduction in the foreign exchange reserves.
Reserve Bank Governor Shaktikanta Das said that despite rising bond yields in the US and a strong American currency, the volatility of the Indian rupee in the calendar year 2023 has been less compared to the currencies of other emerging economies. He said the relative stability of the Indian rupee reflects the improving macroeconomic fundamentals of the Indian economy and its resilience in the face of the devastating global tsunami.
The coefficient of variation for the daily Indian Rupee exchange rate against the US dollar was 0.66 (CY 2023), which is the lowest among peer emerging economies including China, Malaysia, Russia, Turkey, Vietnam, South Africa and Thailand.
On the financing side, Shaktikanta Das said foreign portfolio investment (FPI) inflows have seen a significant turnaround in 2023-24, with net FPI inflows of US$ 24.9 billion (as of December 6) as against net outflows in the last two years. Has happened.
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