Economy

India’s forex reserves hit a record high

India’s foreign exchange reserves climbed to a record high, aided by Reserve Bank of India measures aimed at attracting US dollar inflows. The larger buffer gives the RBI more firepower to defend the rupee, which has remained one of Asia’s worst-performing currencies during the period, keeping reserve adequacy in focus.

Nabka Insight

Forex reserves, their custodian (RBI) and their role in rupee defence are frequently examined.

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Key facts

  • India’s forex reserves touched a record high.
  • The rise followed RBI steps to attract US dollar inflows.
  • Larger reserves give the RBI more room to support the rupee.

Background

Relevant forBanking · SSC · State PSC · UPSC

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