{"id":238057,"date":"2023-04-15T20:23:13","date_gmt":"2023-04-15T14:53:13","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=238057"},"modified":"2023-04-17T14:28:57","modified_gmt":"2023-04-17T08:58:57","slug":"indias-forex-reserves-rise-6-30-bn-to-584-75-bn","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/indias-forex-reserves-rise-6-30-bn-to-584-75-bn\/","title":{"rendered":"India’s forex reserves rise $6.30 bn to $584.75 bn"},"content":{"rendered":"\n

Source: <\/b>The post is based on the article<\/span> \u201cIndia’s forex reserves rise $6.30 bn to $584.75 bn<\/b>\u201d <\/b>published in <\/span>The Hindu<\/b> on 15th April 2023<\/b><\/p>\n

What is the News?<\/b><\/h2>\n

India’s foreign exchange reserves have increased by $6.3 billion to jump to $584.76 billion. This is the highest in nine months.<\/span><\/p>\n

Note:<\/b> In October 2021, the country’s forex reserves had reached an all-time high of $645 billion. The reserves have been declining as the RBI deployed the reserves to defend the rupee amid pressures caused by global developments.<\/span><\/em><\/p>\n

What are Foreign exchange reserves?<\/b><\/h2>\n

Forex or foreign exchange reserves are essential assets held by the central bank in foreign currencies as a reserve.\u00a0<\/span><\/p>\n

They are usually used for backing the exchange rate and influencing monetary policy. RBI is the custodian of the Foreign exchange reserves in India.<\/span><\/p>\n

The biggest contributor to India\u2019s foreign exchange reserve is by foreign currency assets followed by gold, SDR and reserve with the International Monetary Fund.<\/span><\/p>\n

Why are foreign exchange reserves so important?<\/b><\/h2>\n

All international transactions are settled in US dollars and are therefore needed to support our imports.\u00a0<\/span><\/p>\n

More importantly, they are needed to support, and maintain confidence for central bank action, whether monetary policy action or any exchange rate intervention to support the domestic currency.\u00a0<\/span><\/p>\n

It also helps limit any vulnerability because of a sudden disruption in foreign capital flows, which could happen during a crisis. Holding liquid forex thus provides a cushion against such effects and gives the confidence that there would still be enough forex to support the country\u2019s crucial imports in case of external shocks.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article \u201cIndia’s forex reserves rise $6.30 bn to $584.75 bn\u201d published in The Hindu on 15th April 2023 What is the News? India’s foreign exchange reserves have increased by $6.3 billion to jump to $584.76 billion. This is the highest in nine months. Note: In October 2021, the… Continue reading India’s forex reserves rise $6.30 bn to $584.75 bn<\/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":[11416,10498],"class_list":["post-238057","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-indias-forex-reserves","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/238057","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=238057"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/238057\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=238057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=238057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=238057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}