India Reservas Internacionales

Foreign exchange reserves held by the Reserve Bank of India surged to an equivalent of $705 billion as of September 27th, the highest on record. The elevated levels were owed to the robust influx of foreign exchange into the Indian economy, as strong growth and the long-awaited inclusion of Indian assets to JPMorgan’s key emerging market debt index supported foreign investment. This was reflected by the Sensex reaching record highs and the yield on the 10-year G-Sec falling well below the 6.75% threshold. Additionally, the rebound for the yen and the yuan drove the RBI to prioritize the competitiveness of Indian exports, and likely drove the central bank to purchase foreign exchange, propping up its reserves.