In the second week of January this year, the foreign exchange reserve (Forex Reserve) in India rose to 572 billion dollars, according to the weekly statistical note released by the Reserve Bank.
India’s foreign exchange reserves increased by $10.417 billion to $572 billion in the week ended January 13, a Reserve Bank note said.
In the previous week, India’s foreign exchange reserves stood at $561.583 billion. Foreign exchange reserves surged over $10 billion in a single week, hitting a five-month high.
At the beginning of 2022, India’s foreign exchange reserves stood at around $633 billion. The Reserve Bank of India sold a lot of dollars last year to counter the depreciation of the Indian rupee against the US dollar. Thus, while the forex reserves have been falling, the rebound in the last few weeks is considered a positive development.
We have to pay for our imports in dollars. For that it is always necessary to have a certain amount of foreign exchange in reserve.
20 years ago the Government of India had only enough foreign exchange reserves for a few weeks. When countries like Pakistan are in debt, it is a matter of pride that we have enough foreign exchange to meet one year’s import requirement!