Business

India’s foreign exchange reserves reach record high of $648.56 billion

India’s foreign exchange reserves reached a new high of $648.562 billion, with a $2.98 billion increase in the week ending April 5. The reserves have steadily risen for seven consecutive weeks, showcasing a strong economy.

Gold reserves rose by $2.398 billion to $54.558 billion, while foreign currency assets increased by $549 million. Special Drawing Rights (SDRs) also saw a slight increase of $24 million to $18.17 billion.

RBI Governor Shaktikanta Das emphasized the significance of the record reserves, stating that they serve as a crucial buffer during economic fluctuations. The rising reserves not only strengthen the economy but also provide stability to the Indian rupee.

With more than 11 months of import coverage, India’s forex reserves are at a two-year high. The stability of the Indian rupee in comparison to other currencies is a positive indicator for the economy, as it ensures a more controlled exchange rate.

Das highlighted that the Indian rupee remained relatively stable against major currencies, experiencing a lower depreciation of 1.4% against the US dollar in 2023-24. This stability sets India apart from other emerging market currencies and showcases a resilient economy.

IANS

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