foreign exchange reserves
According to the latest data of the Reserve Bank of India, India’s economic health has got a big support. The country’s foreign exchange reserves have increased rapidly during the week ending mid-December. This increase shows that despite global instability, India’s financial position remains strong and the country is capable of facing any external pressure.
This time the biggest reason for the increase in foreign exchange reserves was the rise in gold prices. Due to strong demand and rising prices of gold in the international market, the value of India’s gold reserves has increased significantly. In the current era, when there is uncertainty all over the world, investors are considering gold as a safe investment, which has directly benefited India’s Forex stocks.
Impact of currencies other than dollar
India’s foreign exchange reserves include not only the dollar but also other currencies like Euro, Pound and Japanese Yen. The value of Forex assets changes due to the movement of the dollar against these currencies. For this reason, there has been an increase in the reserves. Besides, a slight strengthening has also been recorded in the rights related to the International Monetary Fund and India’s reserve position.
Adequate for import and external needs
RBI says that the current foreign exchange reserves are capable of meeting the import expenditure of more than 11 months. This clearly means that India has no immediate concerns regarding the purchase of oil, gas or essential goods. This also strengthens the economic stability of the country and the confidence of global investors.
Continuous improvement since last years
If we look at the last few years, there have been ups and downs in India’s forex reserves, but recent figures show a positive trend. After the decline in 2022, there was a gradual improvement in 2023 and 2024 and good growth has been recorded so far in 2025. This indicates that India’s external economy is moving in the right direction. Overall, this increase in foreign exchange reserves reflects India’s economic strength, better management and increasing confidence at the global level.
Pakistan’s forex reserves
State Bank of Pakistan’s foreign exchange reserves increased by US$16 million last week, the central bank said on Friday. SBP said in a statement that in the week ending December 19, the foreign exchange reserves of the central bank were $ 15.9 billion. The bank further said that net foreign exchange reserves with commercial banks were recorded at $5.1 billion. The Central Bank said that the country’s total liquid foreign exchange reserves were $21.0 billion.
Also read- LIC’s cool plan, you will get full Rs 25 lakh on saving Rs 1400, separate lifetime insurance coverage