India’s foreign exchange (forex) reserves surged by $3.883 billion to touch a lifetime high of $541.431 billion in the week ended August 28, Reserve Bank of India (RBI) data showed on Friday (September 4). India’s forex reserves had crossed $500 billion for the first time ever in the week ended June 5, 2020, hitting what was then the all-time high of $501.7 billion.
The current situation stands in stark contrast to the one in 1991, when India had to pledge its gold reserves to stave off a major financial crisis. In March 1991, India had forex reserves of a mere $5.8 billion; today, the country can depend on its soaring foreign exchange reserves to tackle any crisis on the economic front.