New Delhi: India’s foreign exchange reserve has gone up by USD 66 billion so far this year, taking the total to USD 689.235 billion.
It’s a significant figure as India added USD 58 billion to its foreign exchange reserves in 2023, while there was a decline of USD 71 billion 2022.
Forex reserves are assets held in reserve currencies, typically the US dollar, by the central bank and other monetary authorities. Other currencies used for forex reserves are the Euro, Japanese Yen, and Pound Sterling.
India’s forex reserve, that insulates the domestic economy from global volatilities, has touched several all-time highs during the current year.
The latest RBI data released this week put India’s foreign currency assets (FCA) at USD 604,144 points. FCA is the largest component of forex reserves.
Currently, India holds gold reserves worth USD 61.988 billion. India’s forex reserves are estimated to be sufficient to meet import costs for about a year.