Echoes of India’s economic strength, foreign exchange reserves again crossed $700 billion after four weeks, gold reserves also increased. – ..

News India Live, Digital Desk: A big and positive news has come out for the Indian economy. According to the latest data released by the Reserve Bank of India (RBI), the country’s foreign exchange reserves have once again 700 billion dollars Has crossed the psychological level of. After four weeks of continuous decline and volatility, India has achieved this feat, which shows the strength of the Indian market amid global uncertainty.

Big jump of $3.83 billion in a week

According to the weekly data of the Reserve Bank, India’s foreign exchange reserves for the week ended April 10 3.825 billion dollars by increasing 700.946 billion dollars Has reached. Last week (April 3) it was $697.121 billion. It is noteworthy that at the end of February this stock 728.494 billion dollars It was at an all-time high but had been declining for the past few weeks due to the Middle East crisis and dollar selling by the RBI to stem the rupee’s decline.

Forex Assets (FCA) and the magic of gold

Foreign currency assets and gold reserves have contributed significantly to this huge increase in reserves:

Increase in FCA: The largest part of reserves i.e. Foreign Currency Assets (FCA) 3.127 billion dollars Has increased to 555.983 billion dollars.

Shining Gold: The impact of the rise in gold prices in the international market was also visible on India’s treasury. value of gold reserves 601 million dollars by increasing 121.343 billion dollars Has reached the level of.

Safe investments with SDR and IMF also increased

Special Drawing Rights (SDR): The SDR held with the International Monetary Fund (IMF) also increased by $ 56 million, which now stands at $ 18.763 billion.

IMF Reserves: India’s reserve position with the IMF also increased by $41 million to $4.857 billion.

Why is this $700 billion figure important?

Globally, after China, Japan and Switzerland, India is among the few countries in the world which have foreign exchange reserves of more than $700 billion. According to economic experts:

Rupee strengthened: Strong reserves give RBI the power to intervene in the currency market and control the volatility of the rupee.

Protection from external shocks: Amidst the Iran-America tension in the Middle East and rising crude oil prices, this reserve acts as a ‘cushion’ for India.

Investor confidence: Foreign portfolio investors (FPIs) continue to have confidence in the Indian market, due to which the stock market is also expected to gain new momentum.