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Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that with foreign exchange reserves of $ 677 billion, India is in a better position to meet any challenge and finance the current account deficit. The country's foreign exchange reserves have increased by $270 billion in the last three years.
Das said that according to the latest data, the foreign exchange reserves are $ 622 billion. In addition, $55 billion is in the form of forward assets. This asset will mature from time to time every month.
Addressing the meeting of the National Council of Industry Chamber CII (Confederation of ...
Mumbai: Reserve Bank of India (RBI) Governor Shaktikanta Das said on Monday that with foreign exchange reserves of $ 677 billion, India is in a better position to meet any challenge and finance the current account deficit. The country's foreign exchange reserves have increased by $270 billion in the last three years.
Das said that according to the latest data, the foreign exchange reserves are $ 622 billion. In addition, $55 billion is in the form of forward assets. This asset will mature from time to time every month.
Addressing the meeting of the National Council of Industry Chamber CII (Confederation of Indian Industry), he said, "We have foreign exchange reserves of $ 677 billion as of today. India is in a better position to deal with any impact arising from global factors or to finance the current account deficit.
Money reserves give stability and confidence to any economy. On the suggestion that a small part of the reserves should be used to finance the needs of the economy, Das said that this advice is not suitable.
"Using currency reserves to meet the various needs of the economy is not a suitable suggestion...
According to the assessment of RBI, India should not do this and that is why we are not in favor of it. We are confident of maintaining the stability of the Indian currency.
He said that the policy of the central bank is to intervene in the foreign exchange market to prevent excessive volatility. Das also said that the Indian economy is in better shape and is doing well on the external front as well.
However, he said, "We live in an uncertain world and there is no room for complacency. We need to be alert. We are watching this.” Das said that the Reserve Bank is keeping a close watch on crude oil and commodity prices.
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