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India’s foreign exchange reserves are at an all-time high

Logan D Suza

India’s foreign exchange reserves have reached an all-time high.

India’s foreign exchange reserves have reached an all-time high. The neighboring country’s foreign exchange reserves increased by nearly $3 billion in the week ended March 29.

And with this, the country’s reserves reached 645.6 billion or 64 thousand 560 million US dollars. Which is the highest ever in the history of India.

The Economic Times reported in a report last Friday (April 5) that this information has been revealed in the statistics of the Reserve Bank of India, the central bank of India.

According to the report, India’s foreign exchange reserves rose to an all-time high of USD 645.6 billion as of March 29. Reserve Bank of India Governor Shaktikanta Das said this while announcing the decisions taken by the Monetary Policy Committee last Friday.

In the latest figures, the reserves increased by 2.95 billion US dollars compared to the previous one. Reserve Bank of India has even said that the foreign exchange reserves of this South Asian country have been increasing continuously for the last 5 weeks.

India’s foreign exchange reserves reached an all-time high when the opposition is repeatedly attacking the Modi government in the run-up to the Lok Sabha polls, citing the country’s economic situation and employment opportunities.

India’s foreign exchange reserves rose by $2.951 billion to $645.583 billion in the week ended March 29. Which is the highest ever. Basically, the country’s reserves have been increasing continuously for the last 5 weeks.

Reserve Bank of India Governor Shaktikanta Das said, ‘There is a need to strengthen foreign exchange reserves to spend in an adverse financial environment.’

Basically, the greater the foreign exchange reserves of the country, the greater the economic stability of the country. Economic fluctuations at the international level have less impact on that country.

According to RBI data, the country’s foreign exchange reserves increased by $26.5 billion in the last 5 weeks. The increase was $140 million in the week before last week.

Governor Shaktikanta Das said, ‘Strengthening foreign exchange reserves is one of our objectives. It will support us in adverse financial environment.

Earlier, India’s foreign exchange reserves reached the highest level in September 2021. At that time, the foreign currency reserves of the country were 642.453 billion US dollars.

However, since then, the Reserve Bank of India has had to spend foreign currency to stabilize the Indian economy due to various international events.

Incidentally, India has to spend a huge amount of foreign exchange to import various essential commodities including fuel oil. Due to which the country’s foreign exchange reserves are affected.

To solve that problem, India started trading in Indian currency with several countries during the Corona epidemic. Among them are Bangladesh as well as several countries in the Middle East.

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