India surpassed Russia to become the fourth largest country by foreign exchange reserves. India surged ahead of Russia after the latter’s reserves contracted, despite the reserves of both countries declining in the past weeks.
On March 5, foreign reserves of India declined to $580.3 billion after a reduction of $4.3 billion while Russia’s holdings stood at $580.1 billion. Country with the largest foreign reserves is China, which holds $3.3 trillion followed by Japan with $1.3 trillion and Switzerland with $1.08 trillion.
Reserve Bank of India — the nation’s central bank — is steadily augmenting its reserves to tackle any outflows or potential slowdown in capital inflows. India’s reserves are now sufficient to cover exports up to 18 months.