Oct 04, 2024 08:10 PM IST
India is now the fourth country in the entire world to cross $700 billion in foreign exchange reserves, currently preceded by China, Japan, and Switzerland
India’s foreign exchange reserves crossed the $700 billion mark for the first time ever in September 2024, according to data released by the Reserve Bank of India (RBI) on Friday, October 04, 2024.
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The reserves, currently at $704.885 billion, rose by $12.588 billion from last week, by $58.466 billion from the end of March 2024, and by $117.977 billion from the same time of the previous year.
This also makes India, the fourth country in the entire world to cross $700 billion in foreign exchange reserves. China, Japan, and Switzerland currently precede India.
What caused India’s foreign exchange reserves to grow this much?
This growth in the reserves is attributed to multiple factors including $30 billion in foreign inflows so far this year, led mainly by investments in local bonds after the inclusion in an important J.P. Morgan index.
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RBI Governor Shaktikanta Das also has repeatedly mentioned the need to build a large foreign exchange buffer, which can be a lifesaver during periods of high market volatility.
India’s forex reserves may rise to as much as $745 billion by March 2026, Bank of America had forecasted earlier.
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