India now ranks fourth in the world with foreign exchange reserves

Current Context: The International Monetary Fund (IMF) released its Quarterly External Sector Report for Q4 2024 on December 31, 2024.

• This report provides an assessment of the external sector for 30 of the world's largest economies based on their 2023 data.
• Key highlights from the report include:
• Global current account balance narrowed significantly in 2023, reflecting a reversal of large current account surpluses in commodity-exporting countries.
• Net capital inflows to emerging markets remained negative but recovered slightly from 2022 levels.
• The report discusses the implications of energy price swings and the clean energy transition on external sector dynamics.
• India's foreign exchange reserves crossed $700 billion for the first time, ranking it 4th globally behind China, Japan, and Switzerland.

Question:

1 Which country's foreign exchange reserves surpassed $700 billion for the first time in 2023, according to the International Monetary Fund (IMF)’s Quarterly External Sector Report?

• A) Brazil
• B) India
• C) Indonesia
• D) Mexico

Answer: B) The report states that India's foreign exchange reserves crossed $700 billion for the first time, placing it among the top four globally.