Raghuram Rajan lauds RBI for increasing forex reserves

Former Reserve Bank of India (RBI) governor Raghuram Rajan has said that the RBI has done a good job in increasing India’s foreign exchange reserves.

He said India is not facing any economic problems like the ones witnessed in Sri Lanka and Pakistan.

“RBI has done a good job. We have sufficient foreign exchange reserves now. Our foreign debts are also less,” Rajan said, according to an ANI report.

RBI’s latest data

According to the latest RBI data, India’s forex reserves stand at $571.56 billion for the week ended July 22, a drop by $1.152 billion which can be attributed to a drop in foreign currency assets. All other components of the forex reserves registered gains during the week.

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The value of gold reserves rose by $145 million to reach $38.502 billion during the week ended July 22.

RBI data reveals that the value of India’s Special Drawing Rights (SDRs) with the International Monetary Fund (IMF) rose by $106 million to reach a value of $17.963 billion during the week.

In the IMF, India’s reserve position increased by $23 million to reach $4.96 billion during the week under review.

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“The hike in policy rates by the Reserve Bank of India would help in reducing the inflationary pressure,” Rajan said when asked about his take on inflation in India.