India’s forex reserves have reached a milestone, crossing $600 billion in four months and settling at $604 billion as of December 1. The achievement is a landmark achievement, the latest in a series of investments buried above the $600 billion mark recorded on August 11 this year.
In a recent monetary policy statement, RBI Governor Shakti Kant Das highlighted a vital development—a key incentive for participants in the foreign exchange market. This comprehensive framework represents a strategic approach aimed at helping market participants effectively manage risks in the dynamic foreign currency market.
Foreign reserves as of November 24 were reported at $597.935 billion, showing a steady increase over the previous week. It is important to note that in October 2021, India’s foreign exchange reserves had reached an all-time high of $642 billion. But in the subsequent months, there was a deliberate decline in the central bank’s strategic use of reserves to hedge the Indian rupee against global pressures.
Governor Das further enhances the resilience of the Indian rupee, emphasising that it is less volatile than its peers in emerging market economies throughout the calendar year 2023.
