Mains Paper II · 1 Indian Economy · 1.11 External sector

1.11.3 Foreign exchange reserves and Special Drawing Rights

India's foreign exchange reserves, held by the RBI, are mostly foreign currency assets plus gold, SDRs and the IMF reserve tranche, and they stand above US$ 700 billion; the SDR is the IMF's reserve asset, not a currency you can spend.

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  • Advanced level
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Key terms

  • forex reserves
  • foreign currency assets
  • gold
  • SDR
  • reserve tranche position
  • import cover
  • SDR basket
  • IMF
  • reserve adequacy

What this note covers

  1. Core factsFoundation
  2. ExplainedStandard
  3. DeeperAdvanced
  4. Mains writingMains writing
  5. Common trapsFoundation
  6. Quick revisionFoundation

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