India Foreign exchange reserves reached at $651.5B

Anjali Sharma

GG News Bureau
NEW YORK, 8th June.
The RBI Governor Shaktikanta Das on Friday expressed confidence that the central bank was well-positioned to meet the country’s external financing requirements comfortably.

India’s foreign exchange reserves rose to $4.83 billion touched a historic high of $651.5 billion as of May 31, RBI Governor Shaktikanta Das said.

RBI noted on May 24, the country’s Forex reserve was reported at $646.6 billion.

“Touching a new milestone, India’s foreign exchange reserves reached a historical high of US$ 651.5 billion as on May 31, 2024. India’s external sector remains resilient and the key external vulnerability indicators continue to improve. Overall, we remain confident of meeting our external financing requirements comfortably,” he said.

Mr. Das in the post-policy press conference, addressed concerns about inflows resulted from JP Morgan’s bond index inclusion, stated that the central bank is well-prepared to handle them.

“The RBI has a number of instruments. We have managed it in the past. We will manage it this time also. So, no worries on that score,” he said.

He said in his statement that in 2023, India retained its position as the most attractive destination for greenfield foreign direct investment (FDI) in the Asia-Pacific region.

Foreign portfolio investment flows surged in 2023-24, with net FPI inflows reached $41.6 billion as of June 5.

The foreign portfolio investors have turned net sellers in the domestic market, resulting in net outflows of $5.0 billion since the start of the 2024-25.

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