{"id":119914,"date":"2021-07-21T19:02:12","date_gmt":"2021-07-21T13:32:12","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=119914"},"modified":"2021-07-21T19:02:12","modified_gmt":"2021-07-21T13:32:12","slug":"india-emerges-as-5th-largest-forex-reserves-holder-in-the-world","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-emerges-as-5th-largest-forex-reserves-holder-in-the-world\/","title":{"rendered":"India emerges as 5th largest forex reserves holder in the world"},"content":{"rendered":"<p><strong>Source: <\/strong><strong><a href=\"https:\/\/www.pib.gov.in\/PressReleasePage.aspx?PRID=1736885\">PIB<\/a><\/strong><\/p>\n<p><strong>What is the News?<\/strong><\/p>\n<p>The Minister of State for Finance has informed Lok Sabha about the state of India\u2019s Forex Reserves.<\/p>\n<p><strong>State of India\u2019s Forex Reserves:<\/strong><\/p>\n<ul>\n<li><strong>India\u2019s forex reserves <\/strong>currently stand at $608.99 billion as on June 25, 2021.<\/li>\n<li><strong>India has emerged<\/strong> as the fifth largest foreign exchange reserves holder in the world after China, Japan, Switzerland and Russia.<\/li>\n<li><strong>Further, India\u2019s foreign exchange reserves position <\/strong>is comfortable in terms of import cover of more than 18 months and provides a cushion against unforeseen external shocks.<\/li>\n<\/ul>\n<p><strong>Steps taken by RBI: <\/strong>RBI takes regular steps for diversification of forex reserves by:<\/p>\n<ul>\n<li>Scaling up operations in forex swap and repo markets<\/li>\n<li>Acquisition of gold and<\/li>\n<li>Exploring new markets\/products<\/li>\n<\/ul>\n<p><strong>Reasons for Variation in Forex Reserves: <\/strong>Variation in India\u2019s forex reserves is primarily due to:<\/p>\n<ul>\n<li>RBI\u2019s intervention in the foreign exchange market to smoothen exchange rate volatility<\/li>\n<li>Valuation changes due to the movement of the US dollar against other international currencies in the reserve basket<\/li>\n<li>Movement in gold prices<\/li>\n<li>Interest earnings from the deployment of foreign currency assets and<\/li>\n<li>The inflow of aid receipts.<\/li>\n<\/ul>\n<p><strong>Factors on which External Sector Stability Depends: <\/strong>The overall stability of the external sector depends on the following components of the balance of payments:<\/p>\n<ul>\n<li>Exports and imports of goods and services<\/li>\n<li>Remittances (transfers)<\/li>\n<li>Income in the current account,<\/li>\n<li>The size of net capital flows and<\/li>\n<li>External debt.<\/li>\n<\/ul>\n<p><strong>Note<\/strong>: India is comfortable in most of these external sector vulnerability indicators.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: PIB What is the News? The Minister of State for Finance has informed Lok Sabha about the state of India\u2019s Forex Reserves. State of India\u2019s Forex Reserves: India\u2019s forex reserves currently stand at $608.99 billion as on June 25, 2021. India has emerged as the fifth largest foreign exchange reserves holder in the world&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/india-emerges-as-5th-largest-forex-reserves-holder-in-the-world\/\">Continue reading <span class=\"screen-reader-text\">India emerges as 5th largest forex reserves holder in the world<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[8547],"class_list":["post-119914","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-india-emerges-as-5th-largest-forex-reserves-holder-in-the-world","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":1700774450,"cached_date":1704856595},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/119914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=119914"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/119914\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=119914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=119914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=119914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}