Foreign Exchange Reserve: India’s foreign exchange reserves have again taken a big jump. In the week ending December 12, India’s foreign exchange reserves increased from $1.689 billion to $688.949 billion. According to the data released by the Reserve Bank of India (RBI) on Friday, the country’s foreign exchange reserves had increased by $ 1.033 billion last week, due to which it increased to $ 687.26 billion.
According to RBI data, the largest part of the country’s foreign exchange reserves is foreign currency assets (FCA), which increased by $ 906 million to reach $ 557.787 billion during the week under review. Under the FCA, the impact of movements in the value of non-US currencies held in reserves such as the euro, pound sterling and yen against the dollar is taken into account.
Gold reserves also increased
The country’s gold reserve has also increased in the week ending December 12, which increased by $758 million to $107.741 billion. According to RBI data, Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) increased by $ 14 million to $ 18.745 billion. Along with this, India’s reserve position with IMF has also improved, which increased by 11 million dollars to 4.686 billion dollars this week.
This is the real reason
An important reason for this increase in the country’s foreign exchange reserves is the increased foreign investment. According to an information given in Parliament, in the first half of the financial year 2025-26, there has been foreign direct investment (FDI) of $ 50.36 billion in India, which is 16 percent more than a year ago. Also, this is the highest level ever in the first half of any financial year.
Why are foreign exchange reserves important?
The increase in the country’s foreign exchange reserves shows the direction in which the country’s economy is moving. If reserves increase, the world’s confidence in the country’s economy increases. This attracts foreign investors because they are confident that this country is capable of fulfilling its economic responsibilities. Apart from this, it is also used in repaying loans taken from abroad, paying for exports, and handling the weakening of rupee in the international market.
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