Foreign currency reserves of India decreased by $1.2 billion to reach $691.5 billion during the week ending May 30.
Busting the News: 👍🏼 India's Forex Reserves Take a Breather 💤
Mumbai's buzzing scene took a break as the Reserve Bank of India (RBI) announced a dip of $1.237 billion in our forex reserves, bringing it down to $691.485 billion in the week ending May 30. But don't fret, friends! Our foreign exchange kitty is still robust enough to cover 11 months of our country's imports and about 96% of our external debt. RBI Governor Sanjay Malhotra reassured us, reminding us that our external sector remains resilient, and our key external vulnerability indicators continously improve. 🌟🚀
Despite this minor weekly setback, our forex reserves are just a hop, skip, and a jump away from its all-time high of $704.89 billion, achieved in September 2024. Let's talk numbers: The Reserve Bank's data showed that India's foreign currency assets (FCA), the largest component of the foreign exchange reserves, stood at $584.215 billion. Our gold reserves amount to a whopping $84.305 billion.
In light of the news about a dip in India's forex reserves, opinions within the finance sector regarding the overall economic health of the country remain largely positive, with the reserves still covering 11 months of imports and about 96% of external debt. Meanwhile, the governor of the Reserve Bank of India, Sanjay Malhotra, expressed his opinion that the external sector remains resilient and key external vulnerability indicators continue to improve, alluding to the prospects of the Indian business sector.
