Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that India’s foreign exchange reserves have reached an all-time high of $ 651.5 billion as of May 31. Last week, on May 24, it was at $ 646.67 billion. Since then, the total fund has increased by US $ 4.83 billion. According to Bhasha news, Das said in his statement announcing the bi-monthly policy review that a new achievement has been achieved, India’s foreign exchange reserves have reached a historic high of US $ 651.5 billion on May 31.
This record was before this
According to the news, earlier on May 17, the all-time high of foreign exchange reserves was US $ 648.7 billion. Foreign exchange reserves are considered to be one of the key factors representing the overall strength of the economy in withstanding any external sector disturbances. Das said that the country’s external sector remains combative. Referring to the improvement in the current account deficit (CAD), external debt to GDP ratio and net international investment position, he said that key external indicators continue to improve.
Enough to cover 11 months of estimated imports
According to an RBI report, the foreign exchange reserves are sufficient to cover the country’s estimated imports of about 11 months. Foreign exchange reserves are assets held by a country’s central bank or monetary authority. It is usually held in reserve currencies, usually the US dollar and to a lesser extent the euro, Japanese yen and pound sterling. The Reserve Bank of India also manages gold reserves. Recently, the RBI has brought 100 tonnes of gold to India from Britain after a long time.
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