New Delhi, June 6 (IANS) Reserve Bank of India Governor Sanjay Malhotra said on Friday that India’s foreign exchange reserves were $ 691.5 billion till May 30, which is sufficient to import goods of more than 11 months and about 96 percent of the outstanding foreign loans.
According to the latest RBI data, the country’s foreign exchange reserves have decreased by $ 1.2 billion in the week ended 30. At the same time, in the week ended May 23, the country’s foreign exchange reserves rose $ 6.99 billion to $ 692.72 billion. This was the eighth consecutive week when Forex saw a boom.
The largest component of India’s foreign exchange reserves reached $ 586.167 billion in the Value Review period of Forex assets (FCA). FCA includes important currencies such as euros, pounds and yens with dollars.
The country’s foreign exchange reserves have been $ 83.582 billion in the week ended May 30, another important component Gold Reserve.
Due to global fluctuations globally, central banks from all over the world are investing in gold considered safe. RBI has also almost doubled the gold stake in foreign exchange reserves since 2021.
The country’s foreign exchange reserves strengthens the rupee against the US dollar.
The increase in foreign exchange reserves shows the strong base of the economy and this provides enough space to the RBI to stabilize the rupee in case of instability.
The Governor of the Reserve Bank of India (RBI) said that India’s external sector remains strong, as the major indicators of the external sector continue to improve. We are confident of meeting our external funding requirements.
-IANS
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