New Delhi, 26 December. India’s foreign exchange reserves have increased by $ 4.368 billion to reach $ 693.318 billion in the week ending December 19. This information was given by the Reserve Bank of India (RBI) on Friday.
In the previous week, India’s foreign exchange reserves were $ 688.94 billion and there was an increase of $ 1.689 billion. Data released by RBI showed that in the week ending December 19, the value of foreign currency assets increased by $ 1.641 billion to $ 559.428 billion.
Highest increase in gold reserves during this period
During this period, the maximum increase in gold reserves has been seen. The value of gold reserves with the central bank has increased by $ 2.623 billion to $ 110.365 billion. The value of SDR has increased by $ 8 million to $ 18.744 billion. In addition, the share of reserve positions with the IMF increased by $95 million to $4.782 billion.
For any country, its foreign exchange reserves are very important and it gives an idea of the economic condition of that country. Apart from this, it plays a big role in keeping the exchange rate of currency stable. For example, if in a situation there is more pressure on the rupee against the dollar and its value decreases, then the central bank can prevent the rupee from falling against the dollar by using foreign exchange reserves and keep the exchange rate stable.
The increasing foreign exchange reserves also show that the inflow of dollars into the country remains large and this strengthens the country’s economy. Besides, with its increase it also becomes easier for the country to do business abroad.
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