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Foreign-exchange of India Written by Gokul

India has large foreign-exchange reserves; holdings of cash,

bank deposits, bonds, and other financial assets denominated in

currencies other than India's national currency, the Indian rupee.

The reserves are managed by the Reserve Bank of India for the

Indian government and the main component is foreign currency

assets.

Foreign-exchange reserves act as the first line of defense for

India in case of economic slowdown, but acquisition of reserves

has its own costs. Foreign exchange reserves facilitate external

trade and payment and promote orderly development and

maintenance of foreign exchange market in India.

India's total foreign exchange (Forex) reserves stand at around

US$447 billion as on 08 November 2019 highest ever with

foreign exchange assets (FCA) component at around US$415

billion, gold reserves at around US$27 billion, SDRs (Special

Drawing Rights with the IMF) of around US$1.4 billion and

around US$3.6 billion reserve position in IMF in the week to

November 08, 2019, as per Reserve Bank of India's (RBI)

weekly statistical supplement published on November 08, 2019.