Photographer: Dhiraj Singh / Bloomberg
Photographer: Dhiraj Singh / Bloomberg
India’s foreign exchange reserves have overtaken Russia to become the fourth largest city in the world, as South Asia’s central bank continues to accumulate dollars to ease the economy in the face of sudden currents. bith.
Reserves for both countries are relatively flat this year after months of rapid growth. India withdrew as Russian holdings declined at a faster rate in recent weeks.
India’s foreign exchange holdings fell $ 4.3 billion to $ 580.3 billion as of March 5, The Reserve Bank of India said Friday, hitting Russia’s $ 580.1 billion pile. China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund list.
India’s reserves, sufficient for about 18 months of imports, are bolstered by a surplus of rare earth account, rising into the local stock market and foreign direct investment.
Analysts say strong asylum situation reassures foreign investors and credit rating companies that government can meet its debt obligations despite a declining fiscal situation and the economy making its first full cut in more than four decades.
“India’s abundant metal reserves have developed significantly, especially in the last few years,” said Kaushik Das, India’s chief economist at Deutsche Bank, before the latest data was released. release. “A healthy FX reserve position should provide RBI with sufficient comfort to deal with a capital halt or outflow outside of future panic. ”
The RBI bought $ 88 billion net in the spot forex market last year, central bank data show. That helped make the rupee the worst player among Asia’s major currencies last year and earned India a place on the U.S. Treasury’s watch list for money handling.
Recent RBI report he recommended further strengthening of foreign exchange reserves, announcing movements in the rupee around the time of the global taper tantrum in 2013. Governor Shaktikanta Das has said that emerging central market banks need to raise money to prevent any outside blows, regardless of whether they are monitored by the US