Current Forex Reserves of India
India’s foreign exchange reserves experienced a decline of $5.4 billion to $643.16 billion recently, following a period of steady gains. The primary cause of this drop was a reduction in foreign currency assets. The Reserve Bank of India (RBI) actively manages these reserves, which include foreign currencies, gold, special drawing rights, and the reserve position with the International Monetary Fund. These reserves are crucial for maintaining economic stability, managing external trade, and providing a buffer against economic shocks. The RBI intervenes in the foreign exchange market to control volatility and prevent excessive fluctuations in the rupee’s value.
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