India’s Forex Reserves Top $700 Billion for the First Time
Why in the news
A rise in gold holdings, from RBI buying and higher global prices, lifted reserves past a record level.
Key facts
- Gain of $8.5 billion took reserves beyond $700 billion.
- Foreign Currency Assets, the biggest part, fell $1.2 billion on exchange rate moves.
- Purposes: currency stability, crisis buffer, trade and debt liquidity; RBI is custodian.
Components
| Item | Note |
|---|---|
| Foreign Currency Assets | Largest; USD, EUR, GBP, JPY |
| Gold | Held at home and abroad |
| SDRs | Allocated by IMF |
| IMF reserve position | India’s quota |
Exam angle
- Largest component: FCA.