They stood at $608.1 billion as of 11 June, with foreign currency reserves accounting for $563.5 billion. But there is much more to foreign exchange reserves than just their absolute number. A major reason for the narrowing of our net international investment position has been an increase in foreign exchange reserves. One of the suggestions made keeping in mind our high foreign exchange reserves is that these reserves should be spent to give a stimulus to the economy. Hence, using foreign exchange reserves to generate funds is done only in times of an extreme emergency.

Source: Mint June 27, 2021 15:45 UTC