New Delhi
According to the latest data from the Reserve Bank of India (RBI), India’s foreign exchange reserves have increased by $ 7.6 billion to $ 638 billion. This is the third consecutive week when the stock has been increased. Earlier, till 31 January, India’s total foreign exchange reserves were $ 630.6 billion. India’s foreign exchange reserves reached a record level of $ 704.88 billion in September last year.
In the week ended 7 February, Forex assets that are a significant part of the total reserves increased by $ 6.42 billion to $ 544.10 billion. In addition, gold reserves also increased by $ 1.3 billion to $ 72.2 billion. According to the World Gold Council report, the Reserve Bank of India (RBI) bought 8 tonnes of gold in November 2024. Meanwhile, central banks from all over the world had purchased a total of 53 tonnes of gold. India’s total gold holding has increased to 876 tonnes, which has become the second largest gold buying country in the world after Poland.
Meanwhile, the Reserve Bank of India has reduced the repo rate from 25 basis points to 6.25% in its latest monetary policy meeting. This is the first time in five years that RBI has cut interest rates.
Significantly, the increase in foreign exchange reserves keeps the stability of rupee and India’s economy is strong. Also, the loans will be cheaper by cuts in repo rate, which will increase demand in the domestic market and encourage investment. It can also make India an attractive investment destination for foreign investors.
