Economic activity is going on at a very slow pace in the midst of Coronavirus Crisis. Bad news is constantly coming on the economic front. Meanwhile, Forex Reserve of the country is constantly giving relief news. The Reserve Bank of India (RBI) said that the country’s foreign exchange reserves have registered a spectacular increase of $ 11.94 billion during the week ending July 31. With this, the forex reserve has reached a record level of $ 534.57 billion.
Existing forex reserves equal to 13.4 months of import expenditure
The foreign exchange reserves of the country have reached its peak level till now, ie before that India never had such foreign currency. While announcing the Monetary Policy, RBI Governor Shaktikanta Das said on Thursday that the foreign exchange reserves of $ 534.6 billion is equal to 13.4 months of Import Expenses. He said that in the financial year 2020-21 till July 31, the foreign exchange reserves have registered an increase of $ 56.8 billion.
Increase in forex reserves due to increase in foreign currency assets
According to the RBI, earlier in the week ended July 24, foreign exchange reserves had increased by $ 4.993 billion to reach $ 522.630 billion. At the same time, for the first time in the week ending on June 5, the country’s foreign exchange reserves had crossed the record level of $ 500 billion. The biggest reason for the increase in foreign exchange reserves is the increase in foreign currency assets, which is an important part of currency reserves, in the week ended 31 July 2020.
Gold reserves also increased by $ 1.53 billion
The central bank says that FCA has also increased by $ 10.35 billion to $ 490.83 billion. Due to this, gold reserves have increased by $ 1.53 billion to $ 37.63 billion in the week under review. At the same time, India’s reserve currency reserves in the International Monetary Fund (IMF) have increased by $ 54 million to $ 4.64 billion. At the same time, the special drawing right of the country in the IMF has also increased by $ 1.2 million to $ 1.48 billion.
