India’s foreign-exchange reserves surpassed Russia’s to become the fourth-largest in the world.
Reserves for both countries have mostly flattened out this year after months of rapid increase.
Top 3 countries
China has the largest reserves, followed by Japan and Switzerland on the International Monetary Fund table.
India’s foreign currency holdings fell by $4.3 billion to $580.3 billion as of March 5, the Reserve Bank of India said on Friday.
Imports
India’s reserves, enough to cover roughly 18 months of imports, have been bolstered by a rare current-account surplus, rising inflows into the local stock market and foreign direct investment.
RBI
The RBI bought a net $88 billion in the spot forex market last year, central bank data show. That helped make the rupee the worst performer among Asia’s major currencies last year and earned India a place on a U.S. Treasury watchlist for currency manipulation.
Governor Shaktikanta Das has said that emerging market central banks need to build reserves to prevent any external shocks, irrespective of being put on watch by the U.S.
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