Foreign Exchange Reserves Touch New Highs
The fiscal year ended on a positive note with the country’s foreign exchange reserves (FERs) touching a new all-time high of $642.6 billion on 22 March 2024. This surge was facilitated by a sharp reversal of trends in the balance of payments accounts. Consequently, the dissipating negative trends in the external sector, which caused $28.9 billion of outflows from the FERs in 2022–23, soon turned into inflows of around $64.2 billion in 2023–24. This is not surprising as the FERs have been on a rollercoaster ride in recent years.
Source: epw.in
