India’s Forex Reserves At All-Time High Of $493.48 Billion

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WHAT IS FOREX RESERVES?

The International Monetary Fund (IMF) defines foreign reserves as-
External assets that a country’s monetary authority can use to meet the balance of payments financing needs.
Most nations hold the vast majority of their foreign currency reserves in S. dollars, followed by euros.

Foreign currency reserves are vital to a nation’s economic well-being.
Without adequate reserves, an economy can grind to a halt, and a country may be unable to pay for critical imports, such as crude oil etc.

India’s foreign exchange reserves surged $3.43 billion to a fresh all-time high of $493.48 billion in the week-ended May 29, the Reserve Bank of India (RBI) said Friday.
Foreign currency assets, a major component of the overall reserves, increased by $3.50 billion to $455.21 billion.
Total value of the gold reserves, however, continued to decline and were at 682 billion, lower by $97 million as compared with the previous week.
The special drawing rights with the International Monetary Fund (IMF) were unchanged at $ 1.43 billion.
While India’s reserve position with the IMF also rose by $31 million to $4.16 billion during the reporting week