Which year did we have the 3rd lowest foreign exchange reserves?
Answers
Explanation:
Foreign-exchange reserves act as the first line of defense for India in case of economic slowdown, but acquisition of reserves has its own costs.[1] Foreign exchange reserves facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.[2]
India's total foreign exchange (Forex) reserves stand at around US$447 billion as on 08 November 2019 highest ever with foreign exchange assets (FCA) component at around US$415 billion, gold reserves at around US$27 billion, SDRs (Special Drawing Rights with the IMF) of around US$1.4 billion and around US$3.6 billion reserve position in IMF in the week to November 08, 2019, as per Reserve Bank of India's (RBI) weekly statistical supplement published on November 08, 2019[3]. The Economic survey of India 2014-15 said India could target foreign exchange reserves of US$750 billion-US$1 trillion.[4]
As of September 2018, India's foreign exchange reserves are mainly composed of US dollar in the forms of US government bonds and institutional bonds.[5] with nearly 5% of forex reserves in gold. The FCAs also include investments in US Treasury bonds, bonds of other selected governments and deposits with foreign central and commercial banks. India is at 7th position