Change in foreign exchange reserve.

The foreign exchange reserves of a country refer to the amount of foreign currency held by the central bank of that country. The change in foreign exchange reserves can be influenced by various factors such as exports, imports, foreign investments, and foreign aid.

For example, according to a report by the Reserve Bank of India, the foreign exchange reserves of India decreased from USD 635.36 billion as at end-September 2021 to USD 607.31 billion as at end-March 2022. However, in the week ending December 22, 2023, India’s foreign exchange reserves increased by USD 4.471 billion to USD 620.441 billion, hitting a 21-month high. In the calendar year 2023, the RBI added about USD 58 billion to its foreign exchange kitty.

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