Showing posts with the label Economic Crisis 1991

India's Foreign Exchange Reserves - It's Billion Dollar History

  India's Foreign Exchange Reserves - It's Billion Dollar History The Foreign Exchange Reserves are a needy for any Developing economy and for a Country which promotes on Exports. This would be taken care by the Country's Central Bank. Foreign Exchange reserves are generally the purchase or holding of any Global Currency in terms of Trade. Like, 'USD' is said to be the present common currency. There are various reasons that the Central bank have holding the Forex reserves like to control the value of the Currency. The exported country may receive it's revenue in Dollars(USD). The trader who executes the global export trade, can receive in USD and the banks would convert this into the domestic or local currency on behalf of Trader. Then usually the banks can transfer this foreign currency - USD to the Central Bank. The RBI(Reserve Bank of India) will be cautious about the value of the Indian rupee against the US Dollar. Increasing Foreign Exchange reserves is a p