07 January 2018 Current Affairs:
According to Reserve Bank of India (RBI), India’s foreign exchange (Forex) reserves have scaled to a fresh record high of $409.366 billion as on December.
The forex is reserve assets held by a central bank in foreign currencies. It acts as a buffer to be used in challenging times and used to back liabilities.
Almost all countries in the world, regardless of the size of their economy, hold significant foreign exchange reserves.
The components of India’s FOREX Reserves include Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF). FCAs constitute the largest component of Indian Forex Reserves.