Reserve Bank of India has said that, Foreign exchange reserves of country reached an all-time high of US$ 605.0 billion on June 4, 2021. In last one year, country’s foreign exchange reserve rose by US$ 103 Billion.
RBI says, India is the 5th largest reserve holding country in the world, the 12th largest foreign holder of US treasury securities and the 10th largest in terms of gold reserves. RBI estimated that, In terms of projected imports for 2021-22, the current level of reserves provides cover for less than 15 months. At present Switzerland’s reserves are sufficient for import upto 39 months; Japan’s upto 22 months; Russia’s reserves upto 20 months and China’s reserves are sufficient for import upto 16 months.
In the foreign exchange market, the Indian rupee appreciated against the US dollar in May 2021 and gained further in June. In terms of the 40-currency real effective exchange rate index, the Indian Rupee appreciated by 2.0 per cent in May 2021 over its level a month ago.