Forex Reserves Crossed The Record $ 600 Billion: RBI

Forex reserves crossed the record $ 600 billion,Good news for the country’s economy.

The country’s foreign exchange reserves have crossed a new record of $ 600 billion in the week ended June 4.

According to the information given by the Reserve Bank of India (RBI), during the last week it jumped by $ 6.842 billion and it became $ 605.008 billion.

The foreign exchange reserves have jumped by $100 billion in just one year. The country’s foreign exchange reserves reached above $ 500 billion in the week ended June 5 last year.

According to the information given by the RBI, during the reporting week, foreign currency assets (FCA) increased by $ 7.362 billion.

With this increase, the value of foreign currency assets increased to $ 560.890 billion. The FCA covers currencies such as the euro, pound and yen, including the dollar.

Their value is also calculated in dollar terms. However, the value of the country’s gold reserves declined by $ 502 million to $ 37604 billion in the reporting week.

The country’s foreign exchange reserves reached above $ 200 billion in the week ending April 6, 2007. After that it took seven years to cross the $300 billion mark.

Forex reserves crossed $300 billion in the week ended March 28, 2014. However, it took just over three years to add $100 billion and forex reserves were above $400 billion as of September 8, 2017.

In the next two and a half years, the country’s foreign exchange reserves had increased by $100 billion to over $500 billion on June 5, 2020.

The fastest $100 billion has been added to foreign exchange reserves during the last one year only.

Experts say that one of the main reasons for this increase in foreign exchange reserves is that despite the Corona crisis during the last one year, the confidence of foreign investors about the foundation of the economy has remained intact.

Most foreign investors and experts have also agreed about the positive results of the steps taken by the government during the last one year to improve the economy amid the Corona crisis.

At the same time, an advantage of strong foreign exchange reserves will also be that the RBI will be in a position to utilize this reserves in case of monetary stress, which will be able to rein in the volatility of the markets in any unforeseen circumstances.