Reserve Bank of India (RBI) Governor Shaktikanta Das said on Friday that India foreign exchange reserves may have broken the record high of 600 billion USD thanks to strong capital flows.
According to RBI data released on May 28, the country’s foreign exchange reserves rose $ 2.865 billion to a record high of $ 592.894 billion for the week ending May 21, boosted by gold assets and in foreign currencies.
“Based on the current estimate, we believe that our foreign exchange reserves may have exceeded $ 600 billion, ”he said when announcing the bimonthly monetary policy review.
To increase liquidity, the RBI announced several measures, including a special liquidity facility for various sectors affected by the COVID-19 pandemic.
The central bank also announced the G-sec Acquisition Program (G-SAP) 2.0, which will help calm returns and control the excessive volatility faced by players in the government securities market.
During the second quarter of the current fiscal year, the RBI said it would purchase Rs 1.20 lakh crore from G-sec on the secondary market, as part of G-SAP 2.0.
RBI will buy Rs 40,000 crore in government securities on June 17, and the remaining schedule will be announced later, he said.
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