Foreign portfolio investors have been investing heavily in India in the recent past. With this, India’s foreign exchange reserves have increased to the highest level of $ 586 billion.
The RBI has defended the ever-increasing foreign exchange reserves in the country. Das made this statement at a time when America is ready to include India in the currency manipulators countries.
America has placed India on the watch list
This is Das’s first statement on this matter after the US kept India on the watch list last month. The US has said that India has achieved two out of the two criteria of current account surplus and it is continuously interfering unilaterally.
The United States criticized Vietnam, Switzerland and Singapore, including India, for continuing interference in the foreign exchange market. To avoid such a situation, countries like India have no option but to maintain foreign exchange buffer.
Increase in FPI investment increased foreign exchange reserves
Foreign portfolio investors have been investing heavily in India in the recent past. With this, India’s foreign exchange reserves have increased to the highest level of $ 586 billion. Das said that the RBI is closely watching the emerging new trends in the global and domestic economy. In any situation, it is ready to control the situation through policy intervention.
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