India’s Foreign Exchange Reserves Increase
The Economic Survey 2013-14, presented today on 9th
July 2014 in the Lok Sabha by the Union Finance Minister Shri Arun Jaitley, has
noted that India’s foreign exchange reserves increased from US $ 292.0 billion
at end March 2013 to US $ 304.2 billion at end march 2014. The Survey
underlined that India continues to be one of the countries that have sizeable
foreign exchange reserves particularly considering that some of the other major
reserve holders are nations with large current account surpluses. Intervention
in the foreign exchange markets by the RBI so as to manage the exchange rate of
the rupee and guard against volatility without targeting a specific rate is
behind the accumulation of reserves generally. In the specific context of
developments in 2013-14, the intervention was to provide a measure of comfort
against the elevated levels of vulnerability indicators which are expressed as
proportions of reserves.
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