India’s foreign-exchange reserves

India’s foreign-exchange reserves

Question : India has reached which place in the list of countries with the highest foreign exchange reserves?
(a) Fourth
(b) Fifth
(c) Sixth
(d) Seventh
Ans.(a)
Related facts

  • Recently(March 21), beating Russia, India has become the fourth largest country in the world in terms of foreign exchange reserves.
  • In fact, the RBI has continued to deposit dollars to protect the economy from any kind of damage.
  • Reserves for India and Russia have mostly flattened out this year after months of rapid increase.
  • India pulled ahead as Russian holdings declined at a faster rate in recent weeks.
  • India’s foreign currency holdings fell by 4.3 billion dollar to 580.3 billion dollar as of March 5, edging out Russia’s $580.1 billion pile.
  • Other country’s foreign exchange reserve
  • Top three countries regarding forex are — China>Japan>Switzerland.
  • It is notable that India’s reserves, enough to cover roughly 18 months of imports, have been bolstered by a rare current-account surplus, rising inflows into the local stock market and foreign direct investment.
  • The RBI bought a net $88 billion in the spot forex market last year, central bank data show.

By — Pankaj Pandey.

Link:
https://www.business-standard.com/article/economy-policy/india-fx-reserves-surpass-russia-s-to-become-world-s-4th-biggest-121031400470_1.html