Foreign Exchange Reserves Rose By $ 2.518 Billion

Foreign exchange reserves rise, beyond the new record of $ 575 billion.

The country’s foreign exchange reserves rose by $ 2.518 billion to a new record of $ 575.29 billion during the week ended 20 November.

The reserves had climbed by $ 4.277 billion during the week ended November 13 to set a new record of $ 572.771 billion.

The country’s foreign exchange reserves crossed $ 500 billion for the first time during the week ended June 5 and $ 550 billion for the week ended October 9 this year.

According to the Reserve Bank of India (RBI), the huge increase in foreign currency assets (FCA) during the week ended November 20 showed the benefit on foreign exchange reserves.

Foreign currency assets climbed by $ 2.835 billion to $ 533.103 billion in the week under review. The FCA includes the euro, pound, and other currencies excluding the US dollar.

It is also calculated in dollar value. However, at the end of the week under review, the value of the country’s gold reserves fell by $ 339 million to $ 36.015 billion.

Caution needed until Corona vaccine is introduced for economic recovery: CEA

Chief Economic Advisor (CEA) Krishnamurthy Subramanian has said that to continue the pace of economic recovery one has to be careful till the corona vaccine is introduced.

Describing the GDP data for the second quarter (July-September 2020) of the current fiscal as encouraging, the CEA said, “We are optimistic about the economic recovery, but its pace will depend on the move of Covid-19”.

He cited the example of the second wave of Covid-19 in European countries and asked them to continue following the necessary regulations regarding the corona until the vaccine arrived.

The second quarter recorded a decline of 7.5 percent over the same period of the previous fiscal year, while almost all the rating agencies were projected to fall by more than 10 percent.

Subramanian said that manufacturing increased in the second quarter. But the growth of the service sector will be affected by the Corona epidemic.

The industrial production index has entered positive territory during the second quarter and the eight major industrial production levels have touched last year’s level.