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.