India’s foreign exchange reserves at lifetime high
The big question is how much more foreign exchange will the Reserve Bank of India buy, and why?
The big question is how much more foreign exchange will the Reserve Bank of India buy, and why?
The amount is just 0.8% and 5.8% of India’s GDP and foreign exchange reserves, respectively. And the maturity profile is reasonably spread out in FY21.
Since April 2001 foreign exchange reserves grew 11.15 times to $476.09 billion in mid-February; the RBI may add $21 billion more by March 2021, according to a BofA Securities report.
In the week ended October 4, India’s forex kitty swelled to an all-time high of $437.8 billion. In the 471 weeks from October 2010, it has crossed the $400-billion mark 81 times.