India Forex Reserves: Surged
India’s foreign exchange reserves surged by billion, crossing the billion mark for the first time, mainly due to a sharp rise in gold reserves valued at over billion.The rise was driven by RBI’s gold purchases and an increase in global gold prices, while foreign currency assets slightly declined by billion amid exchange rate fluctuations. Foreign Exchange Reserves (Forex Reserves) are external assets held by a country’s central bank in foreign currencies, gold, Special Drawing Rights (SDRs), and reserve positions in the IMF. They act as a financial buffer to manage external shocks, maintain currency stability, and support international trade obligations. In India, the Reserve Bank of India (RBI) is the custodian and manager of the country’s forex reserves.
Aims / Objectives:
To stabilise the value of the Indian Rupee (INR) in case of currency fluctuations.
To ensure sufficient liquidity during balance of payments crises or external shocks.
To strengthen India’s image as a creditworthy and stable economy in global markets.
To meet import and debt servicing needs smoothly even during capital outflows.
