Current Foreign Exchange Reserve of India - MAINS QUESTION - DAILY CURRENT AFFAIR QUESTIONS AND ANSWERS

Saturday, November 7, 2020

Current Foreign Exchange Reserve of India

Foreign exchange reserves of India

India's foreign exchange reserves has increased by $ 5.4 billion to reach $ 560.5 billion. It is the highest level of foreign exchange reserves in India till now. In the list of countries with the highest foreign exchange reserves in the world, India is at the 5th position, China is at the first place in this list.


What is Foreign Exchange Reserves? 


It is an asset kept by the Reserve Bank of India in the form of foreign currency, treasury bills. The Fund includes special withdrawal rights of International currency, gold reserves, assets derived from foreign investment, etc.
Reserve bank is its custodian and manager. It manages it according to the agreement with the government. Foreign exchange reserves support India's imports. More foreign exchange reserves
Makes rupee stronger against dollar. 

Current status of India's foreign exchange reserves:

Foreign Currency Assets (FCA): $ 517.524 billion

Gold Reserve: $ 36.860 billion

SDR with IMF: $ 1.487 billion

Reserve position with IMF: $ 4.661 billion

The main reasons for the increase in foreign exchange reserves of India:


Huge foreign investment in Reliance Jio. 

Stability in portfolio investment. 

Fall in global crude oil prices made imports cheaper. 

Increased gold prices led to an increase in the price of gold reserves. 

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