THE COUNTRY’s foreign exchange reserves rose by another $5 billion in the week-ended July 24 to hit a new high of $522 billion. With this, India has seen its forex reserves expand by $94 billion over the past 10 months.
While the reserves have been driven by a rise in foreign portfolio investment and foreign direct investment, and has been supported by lower crude oil prices and decline in imports on account of the pandemic, experts say that it has provided much needed relief to the economy.
The RBI data released on Friday shows that in the week-ended July 3, foreign currency assets expanded by $3.6 billion to $480.5 billion.
Despite the Covid-19-related stress on the economy and the country going into a stringent lockdown towards the end of March, the first seven months of calendar 2020 have seen a rise of $65 billion in forex reserves.
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