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- India Foreign Exchange Reserves Crossed $600 Billion Mark; What It Means?
Mumbai2 minutes ago
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The country’s foreign exchange reserves have crossed the $600 billion mark for the first time. According to the Reserve Bank of India (RBI), it stood at $ 605 billion in the week ended June 4, which was $ 598 billion till May 28. In this context, an increase of $ 6.84 billion was recorded in the forex reserve in a week.
Economy to benefit from increase in forex reserves
Anuj Gupta of IIFL Securities explains that the increase in India’s forex reserve simply means that the country’s economic condition is getting stronger. India ranks 5th in terms of forex reserves in the world, while China ranks first. If the continuous increase in reserves continues, then India will be included in the top-3 countries of the world.
Why is the country’s forex reserve increasing?
He said that India’s foreign exchange reserves have increased because exports have increased. At the same time, imports have decreased. Apart from this, the strength of rupee against dollar is also supporting. Imports of both edible oil and crude oil have also come down.
Common people also benefit from increasing forex reserve
Anuj says that increasing the forex also benefits the common people. Because it gives money to be spent by government schemes.
Let us tell you that every week RBI releases the figures of foreign exchange reserves. In this, along with the dollar, the pound and yen reserve figures are also included. In the recent MPC meeting of RBI, Governor Shaktikanta Das had also said that forex reserves would have crossed $600 billion on June 4.