Forex kitty nears record $452bn

Foreign exchange reserves continued the upward journey, surging to a new high of $451.7 billion as of December 3, RBI governor Shaktikanta Das said. Since the beginning of the current fiscal, the forex kitty has gained by $38.8 billion as of December 3, the largest in recent years, the governor added.

The total reserves had risen by $347 million to $448.6 billion in the week to November 22, the last reported number by the RBI. The reserves have been surging to new highs every week for the last few months and this is the first time that they have crossed the $450-billion mark.

In the last 12 months several of the emerging market currencies had weakened against the dollar. Among the currencies that weakened, the rupee has been among the better-performing currencies depreciating only 1.21% since December 2018.

According to a report by Care Ratings, the $56-billion addition to reserves up to December is a reflection of overall strong fundamentals.

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