The global financial situation has been colossally affected by the covid-19 pandemic. This disaster put brakes on the development of the whole world. The whole world went behind years in matters of progress. Nowadays the economical situation around the world has become worse and probably it will take years for them to recover from it. India’s current economic situation may not be looking as good, but the big institutions of the world have recognized that the coming time is going to be amazing for the Indian economy. Foreign investors showed their interest in India even during the pandemic crisis. Signs of this have started appearing even in the catastrophe of the Corona period.
The forex market is one of the most moving markets in the world. However, it might be quite unstable and carry extreme risks. Consequently, forex trading might not be profitable for everyone, especially for newcomers. In order to defend the traders against unfavorable market changes, the government of India implements different restrictions on currency exchanging. For instance, the investors can only initiate positions in pairs including Indian currency.
The economy of India is growing fast. Even though the economic situation is getting worse in most of the countries due to the pandemic, the foreign exchange reserves of India have set a 600 billion USD record this year. The country has now entered the list of countries that have forex reserves of above 600 billion USD. As the financial field has been affected, regulated Forex brokers for Indian traders have also had a positive influence over them.
The foreign exchange reserves have risen to 100 billion USD if observing the development in 2021 itself. Actually, the foreign exchange reserves appear to be increasing, since Indian people remain true to their government and their Prime Minister’s reforms. The most main part of this fact is played by the public welfare policies.
The data shows that the foreign currency assets of India have increased by 7.362 billion USD during this week. As a result, the price of foreign currency assets has risen to 560.890 billion USD. The foreign exchange in India reached the fastest pace during 2021. The biggest question about such a quick increase in reserves is the 100 billion
USD gain throughout the last year. If we observe history, this is the first time the country how it has succeeded in accumulating such an amount of capital in such a short time. In the spring of 2007, the reserves of India reached more than 200 billion USD. Afterward, in 2014, it could move to 300 billion USD and in 2017, it was above 400 billion USD. According to this data, it took India seven years to pass the line of 100-300 billion USD. Then last year, the foreign exchange reserves of India expanded by 100 billion USD going up to more than 500 billion USD.
India will keep its distance from monetary pressure because of extended foreign exchange reserves. Financial experts think that India will be able to quickly meet the import expenses of more than one year. Furthermore, a country that has strong foreign exchange reserves interests global investors to invest more in the country. It is an important factor that the economic reforms of the Indian government are having a positive impact.
It should be mentioned that the foreign exchange reserves act a powerful role in lowering instability in the forex market. The government can choose the immediate acquisition of basic military assets, as well as make other such unforeseen investments, which it finds crucial for the moment. This occurs only if the state has enough foreign exchange to carry out the required payment. It is certain that in the middle of the global financial crisis, the actions of the Indian government in the economic field are going to be an important part of the progress for the country.
