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$ 302.6 billion as of March 2011

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What is Forex Reserves?

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves.


What is the role of RBI in forex?

The Reserve Bank of India (RBI) plays a crucial role in the foreign exchange (forex) market by regulating and managing the country's forex reserves, ensuring stability in the currency exchange rates. It formulates and implements policies related to foreign exchange under the Foreign Exchange Management Act (FEMA), 1999. Additionally, the RBI acts as the custodian of India's foreign exchange reserves, intervenes in the forex market to curb excessive volatility, and facilitates external trade and payments. Through these actions, the RBI aims to maintain the overall stability of the Indian economy.


The link between a balance of payments surplus and rising foreign exchange reserves?

A balance of payments surplus occurs when a country's exports and financial inflows exceed its imports and financial outflows, leading to an accumulation of foreign currency. This surplus results in rising foreign exchange reserves, as the central bank purchases the excess foreign currency to stabilise the local currency and manage inflation. Consequently, increased foreign exchange reserves can enhance a country's ability to withstand economic shocks and boost investor confidence. Thus, a balance of payments surplus directly contributes to the growth of foreign exchange reserves.


Who can trade in Indian Rupees?

Most banks in India will exchange Rupees. Some foreign banks and money changers will also exchange.


What do you mean by foreign exchange?

Foreign Exchange is Exchange between two currency.

Related Questions

What is the rank of India in foreign exchange forex reserve?

India holds ninth position in terms of foreign-exchange reserves as of may 2012.


Which country has largest stock of foreign exchange reserves in the world?

China's foreign exchange reserves is $2.13 trillion


What is the full form for FERA and FEMA?

FERA stands for the Foreign Exchange Regulation Act, which was enacted in India in 1973 to regulate foreign exchange transactions and maintain the country's foreign exchange reserves. FEMA, or the Foreign Exchange Management Act, replaced FERA in 1999, aiming to facilitate external trade and payments while promoting the orderly development and maintenance of the foreign exchange market in India.


What is Forex Reserves?

Foreign exchange reserves (also called Forex reserves) in a strict sense are only the foreign currency deposits held by central banks and monetary authorities. However, the term foreign exchange reserves in popular usage (such as this list) commonly includes foreign exchange and gold, SDRs and IMF reserve position as this total figure is more readily available, however it is accurately deemed as official reserves or international reserves.


What has the author I H Kilato written?

I. H. Kilato has written: 'Foreign exchange management' -- subject(s): Foreign exchange administration, Foreign exchange reserves


What is the role of RBI in forex?

The Reserve Bank of India (RBI) plays a crucial role in the foreign exchange (forex) market by regulating and managing the country's forex reserves, ensuring stability in the currency exchange rates. It formulates and implements policies related to foreign exchange under the Foreign Exchange Management Act (FEMA), 1999. Additionally, the RBI acts as the custodian of India's foreign exchange reserves, intervenes in the forex market to curb excessive volatility, and facilitates external trade and payments. Through these actions, the RBI aims to maintain the overall stability of the Indian economy.


What do you mean by Custodian of foreign exchange reserve?

the central bank maintains foreign exchange reserves in order to promote international trade and stabilise exchange rates


The link between a balance of payments surplus and rising foreign exchange reserves?

A balance of payments surplus occurs when a country's exports and financial inflows exceed its imports and financial outflows, leading to an accumulation of foreign currency. This surplus results in rising foreign exchange reserves, as the central bank purchases the excess foreign currency to stabilise the local currency and manage inflation. Consequently, increased foreign exchange reserves can enhance a country's ability to withstand economic shocks and boost investor confidence. Thus, a balance of payments surplus directly contributes to the growth of foreign exchange reserves.


Why do a nation need forex reserves?

Forex reserve or Foreign exchange reserves are only the foreign currency deposits and bonds held by central banks and monetary authorities. A country needs Foreign exchange reserves as it is important indicator of nation's ability to repay foreign debt and also for currency defense. It is also used to determine credit ratings of nations.


Why drawal of foreign exchange prohibited for Nepal and Bhutan?

The withdrawal of foreign exchange for Nepal and Bhutan is prohibited primarily due to the restrictions imposed by the Reserve Bank of India (RBI). This regulation is part of India's effort to manage foreign exchange reserves and maintain financial stability. Additionally, both Nepal and Bhutan have a close economic relationship with India, and the restrictions help to regulate trade and financial transactions between these nations. The policy aims to ensure that foreign currency is used judiciously and to prevent illegal outflows.


What kind of economic impact does taj mahal have on India?

The Taj Mahal is place visited by a lot of tourists. Many foreigners visit India to see the Taj. This effects the foreign reserves of our country as they buy tickets is dollars they have to exchange dollars for rupees in India to stay. As they stay in Hotels, buy stuff, need transport to move around, they have to exchange dollars which increases our foreign reserves. And this results in the increase of the value of rupee. Thank You.. Hope was able to help. :) -R


What does central bank do to conserve foreing exchange reserves?

Central banks conserve foreign exchange reserves by implementing policies that stabilize the national currency, such as adjusting interest rates or intervening in the foreign exchange market. They may also control capital flows by regulating foreign investments and setting limits on currency exchange to prevent excessive outflows. Additionally, central banks can promote export growth and attract foreign investments to enhance reserves. These measures help maintain a stable economic environment and ensure sufficient reserves for international trade and financial obligations.