Skip to content

India’s forex reserves hit all-time high at $575B as economy recovers

Man holds indian rupees.
Jordan Major

India’s foreign exchange reserves have hit an all-time high at $575.29 billion. As of the week ending November 20, the reserves had increased by $2.51 billion.

The Reserve Bank of India has attributed the increase in foreign reserves to a spike in foreign currency assets (FCA). The FCA has shot up by $2.83 billion to $533.10 billion.

The reserves have been on the rise this year after surpassing the $500 billion mark for the first time in June. By the week ending October 9th, the reserves surpassed $550 billion. 

According to experts the surge in FCA was largely on the back of RBI intervention in the currency market to curb the slide of Indian rupees.

India’s forex reserves are made up of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country’s reserve position with the International Monetary Fund (IMF).

However, India’s gold reserves declined by $339 million to $36.01 billion. Furthermore, the country’s reserved position with the IMF increased by $19 million to $4.68 billion. On the other hand, the special drawing rights with the IMF marginally increased by $4 million to $1.492 billion.

India’s economy continues with recovery

The rise comes as India’s economy embarks on a recovery path after the coronavirus lockdown that crippled most sectors. Estimates by the Ministry of Statistics the country’s GDP dropped by about 7.5%. 

The estimates are a positive sign considering that the GDP dropped by a massive 23.9% during the first quarter. The drop was the first direct impact of the pandemic. 

The economic recovery has been led by electricity, gas, water supply, and other utility services with a growth of 4.4%. The agriculture, forestry, and fishing sectors have recorded a growth of 3.4%, while the manufacturing sector grew by 0.6%.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD

Read Next:

Finance Digest

By subscribing you agree with Finbold T&C’s & Privacy Policy

Related posts

Sign Up

or

By submitting my information, I agree to the Privacy Policy and Terms of Service.

Already have an account? Sign In

Disclaimer: The information on this website is for general informational and educational purposes only and does not constitute financial, legal, tax, or investment advice. This site does not make any financial promotions, and all content is strictly informational. By using this site, you agree to our full disclaimer and terms of use. For more information, please read our complete Global Disclaimer.