India's forex reserves surge $3.68 bn to touch record high of $461.16 bn

[lover]

The country's foreign exchange reserves touched a record high of $461.157 billion, after it surged by $3.689 billion in the week to January 3, according to the RBI data.

In the previous week, the reserves had risen by $2.52 billion to $454.948 billion.

In the reporting week, the rise in reserves was mainly on account of an increase in foreign currency assets, a major component of the overall reserves, which rose by $3.013 billion to $427.949 billion, the data released by the Reserve Bank of India on Friday showed.

Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the forex reserves.

In the reporting week, gold reserves rose by $666 million to $28.058 billion.

The special drawing rights with the International Monetary Fund were up by $7 million to $1.447 billion.

The country's reserve position with the IMF increased by $3 million to $3.703 billion, the data showed.
https://www.business-standard.com/a...ouch-record-usd-461-16-bn-120011001203_1.html

 

[Chhatrapati]

But but India's debt is half trillion. What excuse those losers will have when the Forex cross that mark?

 

[That Guy]

But but India's debt is half trillion. What excuse those losers will have when the Forex cross that mark?

I mean, forex really shouldn't be a clutch for your national debt, that's not what it's there for.

 

[Chhatrapati]

I mean, forex really shouldn't be a clutch for your national debt, that's not what it's there for.

That's quite wrong. Contrary to what you said National debt has a direct bearing on Forex reserves. I'm surprised given you face the problem of having low forex and maturing loan repayment forcing you to take additional loans from International Banks, exim banks of China or deposits from other central banks of KSA, UAE...

Considering the highlighted part, yes, ideally it shouldn't be a problem when it comes to developed world.

 

[BringHarmony]

Forex reserve is just that... reserve. Its purpose is to absorb shocks in currency market and to shield nation from taking emergency loans to meet its import bill and debt obligations. So yes, Forex reserves helps in meeting debt obligation but it is actually there to meet any obligation to make payment in USD, if the same cannot be met from working account.

430 + billion dollar forex reserves makes India really stable against any forex shocks due to sudden demands of forex in India.

 

[Han Patriot]

I mean, forex really shouldn't be a clutch for your national debt, that's not what it's there for.

That's foreign debt, does not include domestic gov debt, which is around a trillion usd worth of rupees

 

[Protest_again]

That's foreign debt, does not include domestic gov debt, which is around a trillion usd worth of rupees

Please quote China's domestic debt as well.

 

[Han Patriot]

Please quote China's domestic debt as well.

It's a few magnitudes more than India but so is our gdp. In theory, we can print as much rmb or you rupees as long as inflation is under cobtrol. The point is domestic debt and foreign debt is different. India has 500bil$ foreign debt, therefore India has negative net reserves. Your economy will collapse if US just demand payments of that debt cause oil is priced in dollars. We have 1 trillion in foreign debt and 3 trillion in reserves, enough for roughly a years import.

We also import oil and commodities in RMB, and trying to establish a RMB trading system through belt n road. And that's the reason why US is so pissed and afraid. Iran and Venezuela were selling oil in RMB.... US needs to destroy them.

 

[Protest_again]

It's a few magnitudes more than India but so is our gdp. In theory, we can print as much rmb or you rupees as long as inflation is under cobtrol. The point is domestic debt and foreign debt is different. India has 500bil$ foreign debt, therefore India has negative net reserves. Your economy will collapse if US just demand payments of that debt cause oil is priced in dollars. We have 1 trillion in foreign debt and 3 trillion in reserves, enough for roughly a years import.

We also import oil and commodities in RMB, and trying to establish a RMB trading system through belt n road. And that's the reason why US is so pissed and afraid. Iran and Venezuela were selling oil in RMB.... US needs to destroy them.

Please China's external debt crossed $2 trillion in September last year.

China's External Debt reached 2,032.5 USD bn in Sep 2019, compared with 1,998.0 USD bn in the previous quarter.

China's national debt is $5.2 trillion. Also local govt debt is off balance sheet is another $5.8 trillion. I don't see it as a problem because China is able to service those debts. Just as India. We can also service about 10 months import with our reserves.

Of course we can improve on this. But it is no where close for you to make mockery just because you are somewhat better.

 

[Han Patriot]

Please China's external debt crossed $2 trillion in September last year.



China's national debt is $5.2 trillion. Also local govt debt is off balance sheet is another $5.8 trillion. I don't see it as a problem because China is able to service those debts. Just as India. We can also service about 10 months import with our reserves.

Of course we can improve on this. But it is no where close for you to make mockery just because you are somewhat better.

I am not sure you understand how Chinese banks work, there are no 'private' banks in China, we essentially owe money to ourselves. I am more worried about fireign debt, even after deducting 2 trillion, China is still a net creditor country. We are net 1 trilliom$, and the reduction is because they are trying to reduce dollar holdings. You on the other hand is a net debtor country. One lil finger from Trump and India is fcked. Even with a trade war, China is having 400bil$ surplus... China is trying to reduce reserve accumulation. India is begging for it... Lolol.... Coz you are a trade deficit country and a reserve negative country rated a notch above junk. Lololol

 

[That Guy]

That's foreign debt, does not include domestic gov debt, which is around a trillion usd worth of rupees

Either way, forex should not be a crutch for debt.

That's quite wrong. Contrary to what you said National debt has a direct bearing on Forex reserves. I'm surprised given you face the problem of having low forex and maturing loan repayment forcing you to take additional loans from International Banks, exim banks of China or deposits from other central banks of KSA, UAE...

Considering the highlighted part, yes, ideally it shouldn't be a problem when it comes to developed world.

I said it shouldn't be a crutch, I did not say it has nothing to do with debt. Those are two different things. An example is that you borrow money when your forex is low, and you cannot afford to pay your import bill. That does not, however, justify high debt, just because you have a high forex.

You do not pay debt with forex, you pay your immediate Bills, invest, and buy product with it.

So clearly a link exists between forex and debt, but not in the way that is being suggested.