India’s forex reserve hits $400bn for first time


MUMBAI: India’s forex reserves crossed the $400-billion mark for the first time on Friday. The latest $100 billion has been added to the reserves in three and a half years after they crossed the $300-billion level on April 2014. At current level, the reserves are enough to fund more than a year of imports.

In nominal terms, foreign exchange reserves have increased by $6.6 billion during the first quarter. The reserves have risen by $30 billion since Urjit Patel took charge as RBI governor in September 2016. An increase in these reserves provides the RBI with ammunition to tackle volatility in the forex market. The forex reserves are built up by the central bank by purchasing dollars from banks.

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