Foreign exchange reserves reach new high of $689 billion as stock market surges to record high | News India – ..

Mumbai: After the record rise in the Indian stock market, the country’s foreign exchange reserves have seen a record achievement. As a result of the continuous flow of foreign funds, the country’s foreign exchange reserve level has increased by $ 66.26 billion in the current year, as a result of which the foreign exchange reserve level has also reached a record level of $ 689.46 billion. The foreign exchange reserve has increased by $ 223 million over the weekend of September 13.

Foreign exchange reserves rose for the fifth consecutive week in the week ended September 13.

The level of foreign exchange reserves was $623.20 billion at the end of 2023, which has increased to $689.46 billion by the end of September 13, 2024.

Foreign funds are expected to be attracted to Indian equities after the significant cut in interest rates by 50 per cent in the US, which will further increase the foreign exchange reserves. Globally, India ranks fourth in terms of foreign exchange reserves after China, Japan, Switzerland. However, in the current year India has been at the top compared to other countries in terms of reserves.

Globally, China ranks first in foreign exchange reserves with $3288 billion. Japan has reserves of $1235 billion and Switzerland has reserves of $802 billion. Two decades ago, China had reached the level of $700 billion.

Reserve Bank sources said that in the entire year 2023, $ 60 billion was added to India’s foreign exchange reserves, while in the first eight months of 2024, India has crossed this level.

India topped the world in terms of growth in foreign exchange reserves in 2024 with 7.70 percent, while Switzerland’s reserves grew by 2.60 percent and China’s reserves grew by 1.30 percent.

According to the data received, foreign institutional investors (FIIs) are making net purchases of Rs 77853 crore and Rs 105238 crore respectively in Indian equity and debt instruments in 2024.

The current level of forex reserves is sufficient to meet more than 12 months of import bills. The strong level of forex reserves has seen the Indian rupee less volatile against the dollar compared to other currencies.