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 crossed the psychological level of $ 700 billion. 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 have increased by $ 3.825 billion to reach $ 700.946 billion in the week ended April 10. Last week (April 3) it was $697.121 billion. It is noteworthy that at the end of February, this reserve was at an all-time high of $ 728.494 billion, but due to the Middle East crisis and the sale of dollars by the RBI to stop the fall of the rupee, it was seen decreasing for the last few weeks. Foreign currency assets (FCA) and the magic of gold have contributed significantly to this huge increase in the reserves: Increase in FCA: The largest part of the reserves i.e. foreign currency. Assets (FCA) have increased by $ 3.127 billion to $ 555.983 billion. Shining Gold: The impact of the rise in gold prices in the international market was also visible on India’s treasury. The value of gold reserves has increased by 601 million dollars to reach the level of 121.343 billion dollars. Safe investments with SDR and IMF also increased. Special Drawing Rights (SDR): SDR kept with the International Monetary Fund (IMF) also increased by 56 million dollars, which is now 18.763 billion dollars. IMF Reserves: India’s reserve position with the IMF also increased by 41 million dollars to 4.857 billion dollars. 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: Strength of Rupee: Strong reserves give the RBI the power to intervene in the currency market and control the volatility of the rupee. Protection from external shocks: Amidst the Iran-US tension in the Middle East and rising crude oil prices, this reserve acts like a ‘cushion’ for India. Investor confidence: Foreign portfolio investors (FPIs) remain confident in the Indian market, which also gives new rise to the stock market. There is hope of gaining momentum.