As of October 2024, India's foreign exchange (forex) reserves have swelled to $_______ billion.
Show answer & explanation
Correct answer: A
Explanation
Correct Answer:
Option 1 (701)
Explanation:
According to October 2024 data, India's foreign exchange reserves crossed the historic $700 billion mark for the first time. In the first week of October 2024, it increased to approximately $701.18 billion. This reflects India's economic resilience and a strong buffer against external shocks. Foreign exchange reserves are managed by the Reserve Bank of India (RBI).
Additional Facts:
Components: Foreign exchange reserves consist of four main components: foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and reserve tranches with the IMF.
Significance: Large reserves help stabilize the country's currency (rupee) and ensure import payments.
World Rank: India is among the top 4-5 countries with the largest foreign exchange reserves in the world (along with China, Japan, and Switzerland).
Possible questions for upcoming exams:
Who is the custodian of foreign exchange reserves in India?
(Answer: Reserve Bank of India (RBI))
What is the full form of FCA?
(Answer: Foreign Currency Assets)
Who issues SDRs (Special Drawing Rights)?
(Answer: International Monetary Fund (IMF))