scorecardresearchWhat are the benefits of foreign exchange reserves

What are the benefits of foreign exchange reserves

Updated: 17 Jul 2022, 09:39 AM IST
TL;DR.
India’s foreign exchange reserves, which cushion the economy against unforeseen external shocks, have been touching new historic highs. Let us find out why this is relevant.
The Reserve Bank of India (RBI) holds foreign currency in US dollars because it is a widely traded currency around the world.

The Reserve Bank of India (RBI) holds foreign currency in US dollars because it is a widely traded currency around the world.