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India’s foreign exchange reserves spiked by $4.83 billion touching a historic high of $651.5 billion as of May 31, RBI Governor Shaktikanta Das said.
Notably, as on May 24, the country’s forex reserve was reported at $646.6 billion.
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The Governor expressed confidence that the central bank was well-positioned to meet the country’s external financing requirements comfortably.
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“Touching a new milestone, India’s foreign exchange reserves reached a historical high of US$ 651.5 billion as on May 31, 2024. India’s external sector remains resilient and the key external vulnerability indicators continue to improve. Overall, we remain confident of meeting our external financing requirements comfortably,” he said.
In the post-policy press conference, Governor Das addressed concerns about inflows resulting from JP Morgan’s bond index inclusion, stating that the central bank is well-prepared to handle them.
“The RBI has a number of instruments. We have managed it in the past. We will manage it this time also. So, no worries on that score,” he said.
The Governor also said in his statement that in 2023, India retained its position as the most attractive destination for greenfield foreign direct investment (FDI) in the Asia-Pacific region.
As of June 5, the Foreign portfolio investment (FPI) flows surged in 2023-24, with net FPI inflows reaching $41.6 billion.
However, since the beginning of 2024-25, foreign portfolio investors have turned net sellers in the domestic market, resulting in net outflows of $5.0 billion.
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