- Forex Reserve refers to the buffer maintained to meet the import requirements of a country. It consists of Foreign Currencies (such as US Dollars), Gold, SDR, etc. India’s forex position is 603.7 Billion USD, the 5th highest in the world.
- The higher the forex, the lower would be the current account deficit. Therefore, countries across the globe choose to have sufficient forex reserves. It helps particularly in the situations of supply chain disruption such as the recent Russia Ukraine crisis.
- India’s strong forex position has helped India, particularly during covid-19, to have optimal essential goods from the foreign economies.
Question:
Q.1 What is India’s current ranking in terms of Forex Reserves globally?a. 4th
b. 5th
c. 6th
d. 7th
