India’s foreign exchange reserves rose $ 8.22 billion in the week ended June 5, crossing the $ 500 billion level for the first time.
In the Corona crisis, India is constantly receiving good news on the foreign exchange reserves front. The latest Reserve Bank data shows that for the first time foreign exchange reserves have crossed the $ 500 billion level.
What do the figures say?
According to the data, the week ended June 5 increased by $ 8.22 billion and due to this, the foreign exchange reserves have increased to $ 501.70 billion. This amount of foreign exchange reserves is equal to one year’s import expenditure. In the previous week ended 29 May, foreign exchange reserves had increased by $ 3.44 billion to $ 463.48 billion. If you compare India’s foreign exchange reserves with other countries, then it has reached the third place after China and Japan.
Why is the boom coming?
There are many reasons for the increase in foreign exchange reserves. The biggest reason is the decrease in demand for crude oil. In fact, due to the lockdown implemented in India from last March, fuel demand was reduced. Apart from this, the steep fall in crude oil prices has also supported the foreign exchange reserves. If you understand in easy language, there is cheap and low purchase of crude oil. Because of this, the government has to pay less dollars.
It is obvious that due to low dollar payment, savings have been made and foreign exchange reserves have increased. Apart from this, the investment of foreign companies in the Indian market has increased in the last three-four months. At the same time, foreign investors have once again started the flow of capital in the Indian stock market.
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Anand Mahindra remembered the 90s
India’s industrialist Anand Mahindra has expressed happiness over the steady increase in foreign exchange reserves. With this I have remembered the 90s. Sharing a news, Mahindra tweeted, ’30 years ago India’s foreign exchange reserves had almost come down to zero. We now have the third largest global reserves. In this environment, this news is going to boost morale. Don’t forget the potential of your country and use it properly to get back on the path of economic growth. ‘
