Reserve Bank Of India / Foreign exchange reserves set a new record, reached the top level of $ 651.5 billion

Vikrant Shekhawat : Jun 07, 2024, 12:33 PM
Reserve Bank Of India: 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 the news of Bhasha, 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 was the record before

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 disturbance. Das said that the country's external sector remains combative. Noting improvement in the current account deficit (CAD), external debt to GDP ratio and net international investment position, he said key external indicators continue to improve.

Sufficient to cover 11 months of projected imports

According to an RBI report, foreign exchange reserves are sufficient to cover about 11 months of projected imports of the country. Foreign exchange reserves are assets held by the central bank or monetary authority of a country. 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.