RBI Governor’s statement: India’s foreign exchange reserves at record level of $682.2 billion, economy in strong position

Latest India Forex Reserve: After the recent important meeting of the Monetary Policy Committee of the Reserve Bank of India, very excellent and positive figures have emerged. According to these new reports, despite huge global challenges, the country’s economy remains in a very strong position. The country’s foreign exchange reserves have set a new record which perfectly reflects the economic stability of India.

RBI Governor Sanjay Malhotra said that the country’s current foreign exchange reserves are at a huge and strong level of $682.2 billion. This large stock can very easily meet all the import needs of about 11 months. Apart from this, it is fully capable of covering more than 89 percent of the total external debt of the country.

Forex market and exchange rates

The Governor has clearly said that the Reserve Bank does not fix any specific level of the value of the rupee. The exchange rate of the rupee is allowed to be decided only on the basis of market forces. However, the bank controls the situation when there are huge fluctuations in the market.

The huge tensions in West Asia and global uncertainties are affecting the markets around the world. Its impact can also be seen on India’s growth rate and inflation estimates. Despite these challenges, India’s economy continues to grow very strongly.

RBI remains very cautious to maintain complete stability in the market. The Bank stands ready to make full use of all available regulatory and market-based instruments. The central bank is making policies that can further strengthen the economic foundation of the country.

Huge boost to foreign capital investment

The Bank has taken several important steps to rapidly increase foreign capital investment. 15, 30 and 40 year government securities have now been included in the fully accessible route. Earlier, only securities with tenure up to 10 years were included in this system. Commercial borrowings by public sector companies will now be encouraged.

Also read: RBI MPC Meeting: Governor Sanjay Malhotra said – Repo rate remains at 5.25%, GDP growth estimate reduced to 6.6%

For this, a new concessional foreign currency swap facility will be made available till 13 September 2026. With this, the inflow of foreign capital into the country will increase significantly and at a very rapid pace. RBI has kept all its key interest rates absolutely unchanged without any changes. Along with this, the bank has also maintained its monetary policy stance completely neutral. The move reflects the bank’s immense confidence in the country’s domestic growth and market demand.