India has become the fourth largest country in the world, surpassing Russia in foreign exchange reserves at a time when the Corona has had a devastating effect on the global economy. Central banks in South Asian countries have been collecting dollars to maintain economic security against any sudden external shocks. In that list, India overtook Russia in fourth place.
So far, both India and Russia have been advancing almost equally in foreign exchange reserves. However, due to the sudden increase in one month, India has gone a long way in collecting it from Russia in the last few weeks.
A statement issued by the Reserve Bank of India (RBI) on Friday said that despite India’s তি 4.3 billion deficit in foreign exchange reserves as of March 5, it was ০ 0.2 billion more than Russia’s ৮ 580 billion. In other words, as of March, India’s current foreign exchange reserves are ৮ 580.3 billion.
Over the past 14 months, India has focused on conservation to reduce imports, foreign investment in the local stock market and the rise of growing investment. As a result, India’s foreign exchange reserves have improved.
Last year, the RBI bought only ৮৮ 6 billion from the Spot Forex Market. As a result, Rupee has the worst performance among the largest currencies in Asia. However, given India’s strong position in the current foreign exchange reserves, Reserve Bank Governor Shaktikant Das said, “In emerging markets, central banks must always be prepared to withstand any external push without looking to the United States.” As a result, India has become strong enough to hold foreign exchange in the midst of economic recession.