look news india
Mumbai: The country's foreign exchange reserves rose to an all-time high of $642 billion in the week ended March 15 as a result of significant inflows by foreign institutional investors (FPIs) into the Indian stock market. An increase in foreign exchange reserves has been seen for the fourth consecutive week.
In the week of March 15, foreign exchange reserves increased by $ 6.39 billion to $ 642.49 billion. Foreign exchange reserves had increased by $10.47 billion in the last week. Earlier, in the week of September 8, 2021, the forex reserve figure was $ 642.45 billion, which was the highest level till date. There has been an increase of 16.86 billion dollars in foreign exchange reserves in two weeks.
The foreign exchange reserves were reduced due to the intervention of the Reserve Bank due to pressure on the rupee due to global events. According to Reserve Bank data, the country's gold reserves have also increased by $425 million to $51.14 billion. Foreign currency assets rose to $568.38 billion, reflecting the impact of fluctuations in non-dollar currencies such as the euro, pound and yen.
The growth rate of the Indian economy is estimated to be 7.60 percent in the current financial year. Which is highest among other countries of the world. Due to the strong state of the economy, foreign funds are expected to invest $20.70 billion in Indian equities in 2023. The current year has seen investments worth $1.85 billion so far.
India's inclusion in global bond indices is also likely to lead to significant inflows. Sources in the Reserve Bank said that the Reserve Bank used the inflow of dollars into the country to stop the fall of the rupee against the dollar.
The large amount of foreign exchange reserves helps the Reserve Bank to arrest the fall of the rupee. The current level of foreign exchange reserves is enough to meet the country's 11-month import bill.