As of June 25, 2021, India will be the world’s fifth largest holder of forex reserves.
Highlights:
As of June 25, 2021, India’s Foreign Exchange reserves were 608.99 billion U.S. dollars, and it has become the world’s fifth largest foreign exchange reserve holder after China, Japan, Switzerland and Russia.
In terms of import guarantees over 18 months, Indias foreign exchange reserves are in good condition and provide a buffer against unforeseen external shocks.
The RBI diversifies its forex reserves on a regular basis by expanding operations in the forex swap and repo markets, acquiring gold, and exploring new markets/products while adhering to safety and liquidity standards.