New Delhi, Sep 15 (IANS) Amid global turmoil, India’s foreign exchange reserves are growing rapidly and may soon touch the $700 billion mark, a report said.
India’s foreign exchange reserves remain at an all-time high and could touch the $700 billion mark in FY24-25 ahead of expectations, global investment firm Jefferies reported.
The report said that India’s foreign exchange reserves could increase by $53 billion to $700 billion in the financial year 2024-25. The rupee is currently one of the most stable currencies in the world.
Weekly data released by RBI till September 6 showed that India’s foreign exchange reserves increased by $ 5.2 billion in a week to an all-time high of $ 689.24 billion. During this period, the foreign currency held by the central bank increased by $ 5.10 billion to $ 604.1 billion.
The reason for the increase in the country’s foreign exchange reserves is also the continuous investment being made by foreign investors in India. Foreign Portfolio Investors (FPIs) bought shares worth Rs 16,800 crore last week. FPIs have bought shares worth Rs 27,856 crore from the beginning of this month till September 13.
The report further said that in the last few years, due to inflation, there was a sharp increase in interest rates, but now inflation has come under control all over the world. Due to this, interest rates may be reduced in the coming time. In such a situation, RBI in India can also reduce interest rates in the coming quarters.
–IANS
ABS/ABM