Daily News Analysis

Forex reserves

stylish_lining

Context: Recently, Forex reserves jumped $2.816 billion to $606.859 billion.

About forex reserves

  • Foreign Exchange Reserves refer to assets kept in reserve by a central bank, comprising foreign currencies such as bonds, treasury bills, and government securities.
  • These reserves, expressed in the US dollar, the international standard, are managed by the RBI, serving as the custodian of India's Foreign Exchange Reserves.
  • It includes:
    • Foreign Currency Assets (FCA)
    • Gold reserves,
    • Special Drawing Rights (SDRs)
    • Reserve position with the International Monetary Fund (IMF)

Significance

  • They are utilized to support liabilities denominated in their own issued currency, maintain the exchange rate, and formulate monetary policy.
  • They act as a safeguard in case of an economic Balance of Payment (BoP) crisis. The purpose is to ensure that the RBI has reserve funds in case the national currency experiences a rapid devaluation or faces insolvency.
  • If the Rupee depreciates due to increased demand for foreign currency, the RBI intervenes by selling dollars in the Indian money market to curb the depreciation.
  • Reserves instill confidence in markets and investors regarding a country's ability to meet external obligations.
  • A robust forex reserve is instrumental in attracting foreign trade and building a positive reputation with trading partners.

Corporate Average Fuel Efficiency

The study by Nomura researchers calls for reform of India’s Corporate Average Fuel Efficiency (CAFE) norms, particularly to better protect small cars. Key Highlights of the Study: 1.
Share It

Delhi’s Fuel Ban for Old Vehicles

The Delhi Government has faced considerable backlash following its fuel ban for old vehicles under a directive from the Commission for Air Quality Management (CAQM). The ban was implemented to cur
Share It

India State of Forest Report (ISFR) 2023

The India State of Forest Report (ISFR) 2023 has sparked controversy by attributing part of the negative change in forest cover to the Forest Rights Act (FRA), 2006. The claim has been contested b
Share It

International Treaty on Plant Genetic Resources for Food and Agriculture

The International Treaty on Plant Genetic Resources for Food and Agriculture (ITPGRFA) is a crucial international agreement that plays a key role in the conservation and sustainable use of plant g
Share It

Green Climate Fund (GCF)

The Green Climate Fund (GCF) has recently approved over USD 120 million to support climate resilience projects in Ghana, the Maldives, and Mauritania. This funding aims to assist these countries i
Share It

Quad Critical Minerals Initiative

The Quad Critical Minerals Initiative launched by the United States, India, Australia, and Japan marks a significant shift in global geopolitics and economic strategy, especially with regard to cr
Share It

NITI Aayog's Proposal

NITI Aayog's proposed roadmap to boost India's chemical exports is a significant step toward enhancing the country's position in global chemical supply chains and addressing existing i
Share It

One Big Beautiful Bill Act

The newly introduced 1% tax on outbound remittances under the One Big Beautiful Bill Act (OBBBA) by the United States has raised concerns about its potential impact on global remittance flows, particu
Share It

pulse cultivation

The Department of Consumer Affairs, under the Ministry of Consumer Affairs, Food and Public Distribution, has launched an important initiative to promote pulse cultivation in India, especially to
Share It

Gini Coefficient

The Gini coefficient is a key measure used in economics to quantify income inequality within a country or region. Developed by the Italian statistician Corrado Gini, it serves as an essential tool
Share It

Newsletter Subscription


ACQ IAS
ACQ IAS