Foreign Exchange Reserves: UPSC Daily Important Topic | 22 January 2022

January 22, 2022

Foreign Exchange Reserves:

✓ Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.

✓ It needs to be noted that most foreign exchange reserves are held in US dollars.

✓ India’s Forex Reserve include:

• Foreign Currency Assets

• Gold reserves

• Special Drawing Rights

• Reserve position with the International Monetary Fund (IMF).