Historic leap of Indian economy, foreign exchange reserves cross 725 billion dollars; India’s dominance increased in the world

India Foreign Exchange Reserves: India’s foreign exchange reserves rose by $8.663 billion to an all-time high of $725.727 billion in the week ended February 13. This information was given in the data released by the Reserve Bank of India (RBI) on Friday. In the previous week, a decline of $ 6.711 billion was seen in foreign exchange reserves. The reason for this was the fall in gold prices.

According to RBI data, in the week ending February 13, the value of gold reserves, an important component of foreign exchange reserves, increased by $ 4.990 billion to $ 128.466 billion.

RBI reserve position also increased

The value of Foreign Currency Assets (FCA), the largest component of foreign exchange reserves, increased by $ 3.550 billion to $ 573.603 billion. Along with the dollar, FCA contains many important currencies of the world like yen, euro and pound, whose value is shown in dollars. According to RBI, the value of SDR increased by $ 103 million to $ 18.924 billion in the week ending February 13. At the same time, the reserve position in India’s RBI has increased by $19 million to $4.734 billion.

How important are foreign exchange reserves?

for any country foreign exchange reserves It is very important, and it gives an idea of ​​the economic condition of that country. Moreover, it plays a big role in keeping the exchange rate of the 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 use foreign exchange reserves to prevent the rupee from falling against the dollar and keep the exchange rate stable.

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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.