Forex Reserves climbs to an all-time high of $689.24 billion - Times of India
India Business News: India's foreign exchange reserves have climbed to a record USD 689.235 billion, increasing by USD 66 billion this year. The Reserve Bank of India over
timesofindia.indiatimes.com
NEW DELHI: India's foreign exchange reserves have been on an upward trajectory lately, reaching multiple record highs in recent months. The forex reserves reached $689.235 billion on September 6 after increasing $5.2 billion from a week earlier, as per the recently released data by the Reserve Bank of India.
India's foreign currency assets (FCA), the largest component of the forex reserves, reached $604.1 billion after increasing $5.1 billion from a week earlier. Additionally, the country's gold reserves are presently at $61.988 billion.
Current projections indicate that India's foreign exchange reserves are sufficient to cover approximately one year's worth of projected imports. In the year 2023, India has added around $58 billion to its foreign exchange reserves. However, the previous year, 2022, saw a total decline of $71 billion in the country's forex reserves.
Foreign exchange reserves, also known as FX reserves, are assets maintained by a country's central bank or monetary authority. These reserves are typically held in reserve currencies, with the US Dollar being the most common, followed by the Euro, Japanese Yen, and Pound Sterling. Forex acts as a buffer to safeguard, protecting the domestic economy from global economic turbulence.