India's foreign exchange reserves crossed $600 for the first time. As on June 4, the foreign exchange reserves stood at $605 billion, almost tying with Russia as the fourth largest reserve holder in the world.
While India’s forex reserve was $605.008 billion, Russia’s was $605.2 billion.
It took just about a year for the reserves to rise by $100 billion, which has generally been the pace of accumulation since Shaktikanta Das became the governor of the Reserve Bank of India (RBI) in November 2017.
The huge accumulation of reserves has also improved India’s import cover substantially. At the end of December 2020, the foreign exchange reserves cover of imports increased to 18.6 months. The ratio of short-term debt (original maturity) to reserves has declined to 17.7 per cent at end-December 2020. The ratio of volatile capital flows (including cumulative portfolio inflows and outstanding short-term debt) to reserves was 67.0 per cent at end-December 2020.
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