(Our Bureau, May 28) India’s foreign exchange reserves rose by $563 million to reach $590 billion — the highest ever — in the week ended May 14, RBI data shows. The upsurge was mainly on account of an increase in foreign currency assets. Forex reserves are typically held in the form of gold, SDRs (special drawing rights of the IMF) and foreign currency assets. Indian Express reports that rising forex reserves give comfort to the government and the RBI in managing India’s finances at a time of major contraction in economic growth. It acts as a cushion in the event of an economic crisis and is enough to cover the country’s import bill for a year. China ($3,200 billion) has the world’s largest forex reserves.
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