The decrease in India Foreign Exchange Reserves has now stopped for 7 weeks. The Indian rupee has strengthened 0.5 per cent against the US dollar. The Indian rupee gained 0.5 percent against the US dollar during the business week ended on 24 January 2025.
The reason for this strength also increased by $ 5.5 billion in foreign exchange reserves. However, while there is news of happiness for India on the front of foreign exchange reserves, there is bad news related to this for neighboring Pakistan. Actually, Pakistan’s foreign exchange reserves have declined.
Donald Trump’s decision affected
When the newly elected US President Donald Trump took over the power of the US, he decided not to put the tariff immediately. This brought relief to the Asian currency. This is also one of the reasons for the strength of the rupee. Let us tell you, according to the data released by the Reserve Bank of India, India’s foreign exchange reserves gained 5.574 billion during the week ended on 24 January 2025.
Pakistan’s condition thin
On the one hand, where India’s bag is full of dollar, the neighboring country, Pakistan is facing a tremendous shortage of foreign exchange reserves these days. During the week ended on 24 January 2025, Pakistan’s foreign exchange reserves recorded a decrease of $ 137.2 million. Due to this deficiency, now Pakistan’s foreign exchange reserves have come down to $ 16.052 billion.
Gold reserve and SDR also increased
The recent increase in India’s gold reserve and special drawing rights (SDR) has further strengthened financial stability. In the Union Budget 2025, Finance Minister Nirmala Sitharaman proposed a reduction in import duty on gold and precious metals, which is expected to increase their demand in the domestic market.
Currently, India’s gold reserve has increased to more than 800 tonnes, which has emerged as a safe investment option amidst global economic uncertainties. Meanwhile, SDR has also increased, which has strengthened India’s international financial position.
Also read: New Income Tax Slab explain: There is no tax from 12 lakhs … Then what is the affair of 5% at 4 to 8 and 10% tax on 8 to 12?
(Tagstotranslate) Foreign exchange reserves
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