India became the fourth country to have 700 billion dollars in Forex reserves

Current Context: India has recently achieved a significant milestone by crossing the $700 billion mark in foreign exchange (forex) reserves, making it the fourth country in the world to do so, after China, Japan, and Switzerland.

• Here are the key details:
• Current Reserves: As of the week ending September 27, 2024, India’s forex reserves stood at $704.89 billion. This marks the highest level ever recorded for the country.
• Recent Surge: The reserves saw a substantial increase of $12.6 billion in just one week, the largest weekly rise since mid-July 2023.
• Factors Contributing to the Increase:
• Foreign Fund Inflows: There has been a consistent inflow of foreign funds into both debt and equity markets.
• RBI’s Dollar Purchases: The Reserve Bank of India (RBI) has been actively purchasing dollars to boost reserves.
• Valuation Gains: The increase in reserves is also attributed to valuation gains from a weaker dollar, rising gold prices, and declining U.S. Treasury yields.

Question:

1 As of the week ending September 27, 2024, what was the total value of India’s foreign exchange reserves?

• A) $692.29 billion
• B) $704.89 billion
• C) $712.49 billion
• D) $698.59 billion

Answer: B) India’s forex reserves stood at $704.89 billion as of the week ending September 27, 2024.