India’s foreign exchange reserves jumped about $ 5.271 billion to a record high of $ 598.165 billion in the week ending May 28, according to RBI data.
According to the Reserve Bank of India (RBI) Weekly Statistical Supplement, reserves fell from $ 592.894 billion the previous week to $ 598.165 billion this week.
Announcing the second bimonthly monetary policy review earlier on Friday, RBI Governor Shaktikanta Das said the country’s foreign exchange reserves may have exceeded $ 600 billion currently, reported Mint.
“Based on our current expectations, we believe our (currency) reserves have already exceeded $ 600 billion. This is something that gives us great confidence to face the challenges arising from the global fallout, if it occurs in the future. date, ”Das said.
India’s foreign exchange reserves include foreign currency assets (FCA), gold reserves, special drawing rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF).
On a weekly basis, the FCAs, the largest component of foreign exchange reserves, edged up $ 5.01 billion to $ 553.529 billion.
Expressed in dollars, foreign currency assets include the effect of the appreciation or depreciation of non-US units such as the euro, the pound and the yen held in foreign exchange reserves.
Meanwhile, the value of the country’s gold reserves increased by $ 265 million to reach $ 38.106 billion.
On top of that, India’s reserve position with the IMF declined by $ 5 million to $ 5.016 billion during the week of the report. In addition, India’s special drawing rights with the IMF increased by $ 2 million to $ 1.515 billion.
As India’s foreign exchange reserves cross the $ 600 billion mark, it looks like ample liquidity, both global and domestic, will continue to boost Indian stock markets.
“The success of these efforts is reflected in the stability and order in market conditions and in the exchange rate despite the significant global fallout. Das added.
Experts claim that foreign exchange reserves have exceeded $ 600 billion and over $ 105 billion this year alone, indicating enormous liquidity in the system.
NSE’s average daily turnover is around Rs 79,000 crore in May 2021, compared to Rs 65,000 crore in 2020 and only Rs 36,000 crore in 2019. Experts said youth investments are increasing and that the boom in the markets would not slow any time soon.
With IANS inputs