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.
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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.
