indian Foreign exchange reserves (FX) It increased by $2.98 billion in the first week of the new fiscal year, reaching a record high of $648.562 billion as of April 5, 2024.
Foreign exchange reserves in the reporting week were mainly supported by increases in gold reserves ($2.398 billion) and foreign exchange assets ($549 million).
Two other components of reserves, special drawing rights (up $24 million) and reserve positions at the IMF ($9 million), also increased.
According to the RBI's latest Monetary Policy Report, gold prices rose in the fourth quarter of 2023 as financial markets priced in a sharp cut in policy rates towards 2024, reflected in lower bond yields and a weaker US dollar. rose in the quarter.
The rigidity of gold prices will continue in the first quarter of 2024, reaching a record high in March due to rising expectations for interest rate cuts by the US Federal Reserve (FRB) as well as demand from central banks and Chinese investors. He added that he did.
“We have built up reserves in response to current circumstances, and those efforts continue to serve as a buffer against future risks…Reserves reflect the strength of a nation's balance sheet. RBI Governor Shaktikanta Das said at a bilateral meeting last week. Monthly monetary policy press conference.
India has the world's fourth largest foreign exchange reserves after China, Switzerland and Japan.