The country's foreign exchange reserves are increasing steadily. It has crossed the half-trillion-dollar mark. This is the first time the country's foreign exchange reserves have come to such a high level. According to Reserve Bank data, the country's foreign exchange reserves increased by $ 8.22 billion to $ 501.70 billion in the week ended June 5. This increase in foreign exchange reserves has increased due to the huge increase in foreign currency assets. In this way, the country's foreign exchange reserves have now become equal to one year's import expenditure.

Earlier in the week completed on May 29, the country's foreign exchange reserves had increased by $ 3.44 billion to $ 493.48 billion. At the same time, the foreign currency assets had increased by $ 8.42 billion to $ 463.63 billion in the week completed on June 5. In a tweet, Sanjeev Sanyal, Chief Economic Advisor, Ministry of Finance said, "India's foreign exchange reserves have reached $ 501.7 billion."

In his statement, a senior finance ministry official said that crossing India's $ 500 billion foreign exchange reserves is a historic moment for the country. The official said, "The increase of about $ 24 billion after March 2020 is a sign of the confidence of the Indian economy." He said that India has been rewarded for its strong macro-economic stability. The Chief Economist of CARE Ratings, Madan Sabnavis, cited the reason for the rise in the foreign exchange reserves and said that due to the outbreak of Coronavirus epidemic, there has been a decline in trading activities, which has resulted in a reduction in the current account deficit. This is why foreign exchange reserves are increasing. The second reason is that the flow of capital is increasing to a great extent.

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India's foreign exchange reserves breaks all records, crosses 500 billion dollar for first time