On the other hand, the economies of most countries were thrown into turmoil as a result of Corona. Many countries suffered financial setbacks as a result of this crisis. The Modi government, on the other hand, has taken a number of steps to improve the country’s economy through its policies. Those results have begun to emerge. As a matter of fact, India has overtaken Russia to become the fourth-largest foreign exchange reserve ie forex reserve.
In a report published by Bloomberg,
A total of $ 580.3 billion in foreign exchange reserves were held by India as of March 5.
The country’s reserves, on the other hand, now total $580 billion.
There has been a $4.3 billion decrease in Indian foreign exchange reserves since the end of 2013.
China, India’s next-door neighbor, tops this list. For the first time in history, China has the world’s largest stockpile of foreign currency.
The country has $3,336 billion in foreign exchange reserves.
That Japan has $ 1,379 billion in foreign exchange reserves, and Switzerland has $ 1,080 billion.
In the event of a financial crisis, foreign debt is held in a manner that allows it to be repaid.
Investors and businesses can have faith that the government will be able to pay back its debts no matter what happens.
Reserves of foreign currency
Sdr Treasury bill Bond and Government bonds are included in the foreign currency Gold reserve.
Treasury bills account for 64% of the country’s foreign exchange reserves. Currently, based on information provided by the RBI,
reserves de change denominated in other countries’ currency of 28%
And the commercial bank holds 7.4% of the total.
The government wants India to be self-sufficient, so it is placing a high value on reducing imports while increasing exports.
A production-linked incentive (PLI) program has been instituted by the government as a result of these findings. The foreign exchange reserves are expected to grow as a result of this plan. As a result, India’s import costs will be lower, and the country’s GDP will grow.