The sound of Indian economy rang in the world! Foreign exchange reserves jump beyond $697 billion, Dragon’s tension increased

India Foreign Exchange Reserves Record: India’s foreign exchange reserves have increased by $9.063 billion to reach $697.121 billion in the week ending April 3. This information was given in the data released by the Reserve Bank of India (RBI) on Friday. In the previous week, a decline of $ 10.288 billion was seen in foreign exchange reserves. The reason for this was the decline in the value of FCA.

According to RBI data, the value of gold reserves, an important component of foreign exchange reserves, increased by $ 7.221 billion to $ 120.742 billion in the week ending April 3.

Increase in foreign currency assets

The value of Foreign Currency Assets (FCA), the largest component of foreign exchange reserves, increased by $ 1.784 billion to $ 552.856 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, in the week ending April 3, the value of SDR has increased by $ 58 million to $ 18.707 billion. At the same time, there has been no change in India’s reserve position in the IMF (International Monetary Fund) and it has remained the same at $4.816 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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Business will be done easily in foreign countries

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.