MUMBAI: The country’s foreign exchange reserves have again crossed the $600-billion mark with the exchange rate stabilising and record remittance flows from non-residents, which hit $107 billion in FY23. The increase in reserves is partly because of dollar and gold purchases by the RBI and partly due to the increase in the value of non-dollar assets.
Reserves had crossed the $600-billion mark for the first time in June 2021 and touched a high of $642 billion in September 2021 before slipping below that level in May 2022 when the rupee came under pressure following the Ukraine invasion.
Reserves had crossed the $600-billion mark for the first time in June 2021 and touched a high of $642 billion in September 2021 before slipping below that level in May 2022 when the rupee came under pressure following the Ukraine invasion.
RBI governor Shaktikanta Das said that the country’s current account situation has improved to 2.2% in Q4 from 3.7% in Q2 because of a lower merchandise trade deficit and robust growth in services exports. “Foreign exchange reserves have rebounded from $524.5 billion on October 21, 2022, and now stand in excess of $600 billion, taking into account our forward assets,” said Das.
India’s services exports continued to grow at a healthy pace in the first two months of 2023.
