Foreign exchange reserves position as on 27 Jul2021

Foreign exchange reserves position as on 27 Jul 2021

India’s foreign exchange reserves position is comfortable in terms of import cover of more than 18 months and provides a cushion against unforeseen external shocks
Whether the reserve funds are adequate to meet the international payment obligations, the ratio of forex reserves to total external debt stood at 101.2 per cent and short-term external debt to forex reserves stood at 17.5 per cent as at end-March 2021.
The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves was 67.0 per cent at end-December 2020. India is comfortable in most of the external sector vulnerability indicators.

India’s Foreign Exchange Reserves

Year	Foreign Exchange Reserves (US$ Billion)
2016-17	370.0
2017-18	424.5
2018-19	412.9
2019-20	477.8
2020-21	577.0
9^th July 2021	611.9

Source: RBI

International Currencies In Our Forex Reserve-

The foreign currency assets, constituting more than 90 per cent of India’s forex reserves, are maintained as a multi-currency portfolio comprising major currencies, such as US dollar, Euro, Pound sterling, Japanese yen, etc.

For more info on Forex Reserves:https://www.aspireias.com/daily-news-analysis-current-affairs/Forex-Reserves-of-India