2 August Foreign exchange reserves will exceed 600 billion dollars

Business Business: The Reserve Bank of India meets the MPC every two months. In this meeting, the MPC committee takes several decisions related to repo rate and inflation. The MPC meeting started on August 6 this month, the decisions of which were announced by RBI Governor Shaktikanta Das this morning.
The RBI Governor said that the committee has decided to keep the repo rate stable this time too. Apart from this, the country’s foreign exchange reserves have also reached their highest level.

Reserve Bank of India (RBI) Governor Shaktikanta Das today said that the country’s foreign exchange reserves reached a record high of $675 billion on August 2, 2024. Earlier, the maximum level of foreign exchange reserves was $670.85 billion on July 19, 2024.

However, as of July 26, 2024, foreign exchange reserves stood at $667.38 billion. Shaktikanta Das said that the country’s external sector overall “remains resilient”, as evidenced by the improvement in key indicators. In such a situation, it is expected that this confidence will be created that external financing needs will be easily met.

Das said that since June 2024, foreign portfolio investors have become net buyers in the domestic market. Between June and August 6, the net inflow was $9.7 billion, while there was an outflow of $4.2 billion in April and May.

Additionally, gross foreign direct investment (FDI) increased by more than 20 per cent in April-May 2024. At the same time, the net inflow of foreign direct investment during this period doubled compared to the same period last year. He said that external commercial borrowings of Indian companies have declined, but non-resident deposits have increased in April and May.