India is the world's 5th largest forex reserve holder

India is the world's 5^th largest forex reserve holder:

            India becomes the 5^th largest foreign exchange reserve holder in the world, with forex reserve topping $500 billion for the first time ever for the week ended 5 June 2020, the Indian rupee may head north from here with the current capital outflows turning into inflows.

 

         India Foreign Exchange Reserves: Foreign Exchange Reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities. These assets serve many purposes but are most significantly held to ensure that the central bank has backup funds if the national currency rapidly devalues or becomes altogether insolvent.

        India's Forex Reserve includes:

                  i) Foreign currency Assets

                 ii) Gold reserves

                iii)Special Drawing Rights

                iv) Reserve position with the International Monetary Fund (IMF)