India has become the 5th largest foreign exchange reserves country in the world with $608.99 billion. As of June 25, 2021, India has become the fifth largest foreign exchange reserve country in the world after China, Japan, Switzerland and Russia. Which is a good news for the countrymen. The central government pointed out that the quantum of current account deficit is more than the net capital inflow volume.
From the point of view of India’s balance of payments in the financial year 2020-21, surplus has been recorded in both current account and capital account. Due to which the foreign exchange reserves of the country have increased. In this way the country of India is continuously moving on the path of progress. The abundant foreign exchange reserves are proof of this. This news was given by the Reserve Bank of India. With this new record, India has become the fifth largest country in the world.
Currency reserves stood at $ 611 billion in July
The country’s foreign exchange reserves increased by $ 1.883 billion to a record $ 611.895 billion in the week ended July 9. Earlier, for the week ended July 2, currency reserves had risen by $ 1.013 billion to $ 610.012 billion. During this period, the country’s gold reserves increased by $584 million to $36.956 billion.
Forex reserves increased by $ 99.2 billion in 2020-21
The country’s foreign exchange reserves increased by $ 99.2 billion during the financial year 2020-21 including valuation effect. The increase was $64.9 billion in the previous year. The Reserve Bank said foreign exchange reserves are affected by valuation gains, depreciation of the US dollar against major currencies and rise in gold prices.
The valuation profit was $11.9 billion during the year 2020-21 as against $5.4 billion during the year 2019-20. On a year-on-year basis on balance of payments (excluding valuation effects), foreign exchange reserves increased by $87.3 billion during FY 2020-21, as compared to an increase of $59.5 billion during FY 2019-20.
Current account surplus $23.9 billion
The current account surplus was $23.9 billion in the financial year 2020-21, while the deficit was $24.7 billion in the financial year 2019-20. The data shows that the capital account stood at $63.4 billion in FY 2020-21, up from $84.2 billion in the previous fiscal. Foreign investment in the country was $80.1 billion in the financial year 2020-21, while it was $44.4 billion in the financial year 2019-20.
