New Delhi. A positive sign has emerged for India’s economy. According to the latest data of the Reserve Bank of India (RBI), the country’s foreign exchange reserves have increased to US $ 688.949 billion in the week ending December 12. During this period, an increase of $ 1.689 billion was recorded in the total reserves, which further strengthens India’s financial position.
Confidence increased due to continuous growth
Even a week before this, the foreign exchange reserves had increased by $ 1.033 billion, due to which it reached $ 687.26 billion. This continuous growth reflects India’s strong position amid global economic uncertainties and increases investor confidence.
Increase in foreign currency assets
According to RBI, foreign currency assets, considered the largest part of foreign exchange reserves, have increased by $906 million. With this their total value became 557.787 billion dollars. Apart from the dollar, these assets also include currencies like euro, pound and Japanese yen, fluctuations in whose value affect the total reserves.
Gold reserves also gave strength
This week there was also a significant increase in India’s gold reserves. The total value of gold increased by $ 758 million to reach $ 107.741 billion. Gold is considered a safe investment in times of global uncertainty, hence its increase reflects India’s strategic preparedness.
SDR and IMF situation improving
There has also been a slight but significant increase in Special Drawing Rights (SDR). It increased by $14 million to $18.745 billion. At the same time, India’s reserve position with the International Monetary Fund (IMF) has also increased by $ 11 million to reach $ 4.686 billion.
Strong foreign exchange reserves help the country deal with import payments, external debt obligations and global financial shocks. It also plays an important role in maintaining the stability of the rupee and maintaining confidence in the economy.
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