Rising forex reserves and its importance - INSIGHTSIAS

In 1947, India had just Rs 1500 crore cash. Today, we are about to cross $500 billion in foreign reserves. We have come a long way

In 1947, when India got independence, we had just Rs 1500 crore in cash with us, and even paying Rs 55 crore to Pakistan was a big deal. Mahatma Gandhi had to keep a day's fast to convince Vallabhbhai Patel to transfer Rs 55 crore to Pakistan.
Then we started storing foreign reserves to the calamity and emergency.
In 1960, India had foreign reserves of $1.46 billion, which could have lasted just 8 weeks of import.
In 1980, India had foreign reserves of $7 billion
In 1991, India's foreign reserves dipped to an alarming level of just $1.2 billion, which could have lasted just 3 weeks of imports. RBI had to pledge 46.91 tonnes of gold with the Bank of England and the Bank of Japan, and raised $400 million to deal with the unprecedented crisis
In 2004, for the first time, we achieved foreign reserves of $100 billion
Due to solid performance of our foreign reserves, we somehow navigated the recession of 2009, and our foreign reserves stood at $270 billion
And now, for the first time in our history, India will have $500 billion of foreign reserves. As of now, we have $493 billion, which is enough to sustain 17 months of imports.
We are right now world's 3rd biggest nation with foreign reserves, after China and Japan.
India has indeed come a long way from having just Rs 1500 crore in cash to pledging Gold to sustain the economy, to crossing half a trillion-dollar of foreign reserves.
Sources: 1 2 3 4 5
submitted by wordswithmagic to india [link] [comments]

Since I angered some Chads on /r/investing here's why I think China is the next "big short".

Fellow idiots,
I posted this comment which seems to have angered the highly sophisticated /investing community. I don't mind being downvoted but at least provide some counter arguments if you're going to be a dick. So in the pursuit of truth and tendies for all, I have prepared some juicy due diligence (DD) for WSB Capital on why China is on the verge of collapse.
TL;DR at the bottom.
Point 1: Defaults in China have been accelerating aggressively, and through July 2019, 274 real estate developers filed for bankruptcy, up 50% over last year. A bonus? Many Chinese state controlled banks have been filing for bankruptcy as well. Just google "china bank defaults" or something similar. Notice how many articles there are from 2019? When the banking system fails, everything else usually fails too.
Point 2: The RMB has depreciated significantly. Last time this happened, in 2015-2016, there was a significant outflow of foreign invested capital. According to the IIF, outflows reached $725bn due to the currency depreciation.. This time is different why again? I have heard some arguments why there will be less outflow this time, but I struggle to buy them.
Point 3: Despite wanting to operate like a developed economy, China still has not been able to shrug off the middle income trap. Their GDP per capita is comparable to countries we normally associated with being developing/emerging markets. Tangentially related to point 10.
Point 4: China is an export-dependent economy, with about 20% of their exports contributing towards their GDP. Less exporting means less GDP, less consumption (because businesses make less money, they pay people less, who in turn spend less), which has a greater effect on GDP than any declines in exports would have at face value. Guess what? Chinese exports dropped 1% in August, and August imports dropped -1%, marking the 5th month this year of negative m/m export growth..
Point 5: Business confidence has been weak in China - declining at a sustained pace worse than in 2015. When businesses feel worse, they spend less, invest less in fixed assets, hire less until they feel better about the future. Which takes me to my next point.
Point 6: Fixed asset investment in China has declined 30 percentage points since 2010. While rates are low, confidence is also low, and they are sitting on a record amount of leverage, which means they simply will not be able to afford additional investment.
Point 7: They are an extremely levered economy with a total debt to GDP ratio of over 300%, per the IIF, which also accounts for roughly 15% of global total fucking debt. Here's an interview with someone else talking about it too.
Point 8: Their central bank recently introduced a metric fuckton of stimulus into their economy. This will encourage more borrowing....add fuel to the fire. Moreover, the stimulus will mechanically likely weaken the RMB even more, which could lead to even more foreign outflows, which are already happening, see next point.
Point 9: Fucking LOTS of outflows this year. As of MAY, according to this joint statement, around 40% of US companies are relocating some portion of their supply chains away from mainland. This was in May. Since May, we have seen even more tariffs imposed, why WOULD companies want to stay when exporting to the US is a lot more expensive now?
Point 10: Ignoring ALL of the points above, we are in a global synchronized slowdown, with many emerging market central banks cutting rates - by the most in a decade. Investors want safety, and safe-haven denominated assets are where we have seen a lot of flocking into recently. Things that can be considered safe-havens have good liquidity, a relatively stable economy, and a predictable political environment.
Would love to hear opposing thoughts if you think China is a good buy. I am not against China, nor any other country for that matter, but I am against losing money (yes, wrong sub etc.), and I can not rationalize why anyone would be putting in a bid.
TL;DR: the bubble is right in front of your face, impending doom ahead, short everything, fuck /investing.
Edit, since you 'tards keep asking me how to trade this, there are a few trades that come to mind:
*not investment advice*
submitted by ComicalEconomical to wallstreetbets [link] [comments]

1000Pip Climber System 1000 Pip Climber System Bot Review Economic Reforms since 1991 or New Economic policy- part 05 in Hindi India's foreign exchange reserve at all time high, according to RBI Monetary Policy in India - Tools in the hands of RBI Biosphere Reserves of Indiaभारत के बायोस्फियर रिज़र्वStaticGk Most important for your Exams Investing Basics: Forex - YouTube Foreign Reserves of India, Analysis of 4 big potential threats faced by Forex, Current Affairs 2018 Forex Megadroid Video Review - YouTube Module 27  RBI Functions - Custodian of Foreign Reserves  Banking Awareness  GKToday

In order to achieve the objective, newer data available for India’s forex reserves are utilised. Annual data for the sample period 2000- 2001 to 2017-18, on SDR, Gold, Foreign Currency Assets ... India can do it now given its forex reserves can cover over 15 months of imports. India never had such luxury in its history till now. China started it at $200 billion, it is almost a trillion now. Click to expand... Alot is hot money going into stocks, once they sell it off and withdraw, then India will tank again. Protest_again SENIOR MEMBER. May 19, 2019 3,384-38 2,375 Country Location. Oct ... An Analysis of Foreign Exchange Reserves in India since 2001-2016 Saba Abid , Neelam Jhawar 4490, Shahtara Street, Ajmeri Gate, Delhi 110006 Abstract: The study is aimed at analysing the trend in Foreign Exchange Reserves and its components in India. The period of the study is defined from 2011 to 2016 and is based on secondary data. Keywords: Sdrs, IMF, FOREX, RTP. I. Introduction In simplest ... Download PDF Download. Share. Export. Advanced. IIMB Management Review . Available online 25 October 2019. In Press, Journal Pre-proof What are Journal Pre-proof articles? Analysis and Estimation of Foreign Exchange Reserves of India Using Soft Computing Techniques. Author links open overlay panel Mriganka Mohan Chanda PhD Scholar a Dr. Gautam Bandyopadhyay b 1 Dr. Neelotpaul Banerjee c 2 ... Rising forex reserves and its importance. What to study? For Prelims: Components of Forex reserves. For Mains: Rising forex- reasons, significance and how to utilise it? Context: Amid pandemic, India’s foreign exchange reserves are rising and are slated to hit the $500 billion mark soon. In the month of May, forex reserves jumped by $12.4 billion to an all-time high of $493.48 billion ... India’s foreign exchange reserves, which currently stand at more than USD 500 billion, are the fifth largest in the world after China, Japan, Switzerland and Russia, as per the International ... 05 January 2020 Current Affairs:India's foreign exchange reserves got by 2.520 billion USD to touch a record high of 457.468 billion USD in the week on 27th December 2019.The foreign currency assets, a significant part of the overall reserves, rose by 2.203 billion USD to 424.936 billion USD. Third, there is some interest within India on our level of forex reserves, as evidenced by several articles in financial dailies, economic journals and research papers. There are also some differences among academics on the direct as well as indirect costs and benefits of the level of forex reserves, from the point of view of macro-economic policy, financial stability and fiscal or quasi ... India’s forex reserves crossed $500 billion for the first time ever in the week ended June 5, 2020. Unlike in 1991, when India had to pledge its gold reserves to stave off a major financial crisis, the country can now depend on its soaring foreign exchange reserves to tackle any crisis on the economic front. While the situation is gloomy on the economic front with GDP set to contract for the ... Foreign Exchange Reserves in India increased to 560720 USD Million in October 30 from 560532 USD Million in the previous week. Foreign Exchange Reserves in India averaged 239317.46 USD Million from 1998 until 2020, reaching an all time high of 560720 USD Million in October of 2020 and a record low of 29048 USD Million in September of 1998. This page provides the latest reported value for ...

[index] [12582] [4817] [20877] [23232] [3757] [22333] [5873] [25979] [20993] [3423]

1000Pip Climber System

Ultimate success Static Gk Series Biosphere Reserves Of India Total No. of Biosphere Reserves In India-18 PDF link---https://drive.google.com/file/d/1a5Obngj... India's foreign exchange reserve at all time high, according to RBI, Click for PDF - https://drive.google.com/open?id=1JM9yn5-JYCTMNP1uvT0hpL-l7ST635Sl Join ... Food for thought: How your belly controls your brain Ruairi Robertson TEDxFulbrightSantaMonica - Duration: 14:31. TEDx Talks Recommended for you substantial increase in forex reserves flow of private foreign investment recognition of India as an emerging economic power shift from monopoly market to competitive market u can ask ur queries ... Foreign Reserves of India, Analysis of 4 big potential threats faced by Forex, Current Affairs 2018 Study IQ education. Loading... Unsubscribe from Study IQ education? Cancel Unsubscribe. Working ... One of the major functions of RBI (Reserve bank of India) is to control inflation and liquidity in the economy. Today I am going to discuss various tools with RBI that directly impacts the money ... Forex Megadroid Video Review The Link Below For Click More Information: https://tinyurl.com/y7smftsv Tag: forex,to forex,of forex,the forex,a forex,for... forex,to forex,of forex,the forex,a forex,forex about,or forex,forex com,forex market,forex trade,forex online,forex trading website,forex com leverage,online forex,forex what is robot,the forex ... forex,to forex,of forex,the forex,a forex,forex about,or forex,forex com,forex market,forex trade,forex online,forex trading website,forex com leverage,online forex,forex what is robot,the forex ... Subscribe: http://bit.ly/SubscribeTDAmeritrade Every day, trillions of dollars are traded on the forex market, which influences other asset classes. To get a...