India's coffers were full and pakistan became poor…
The decline in foreign exchange reserves for 7 consecutive weeks has now stopped. The indian rupee has strengthened by 0.5 percent against the US dollar. During the business week ending on 24 january 2025, the indian rupee strengthened by 0.5 percent against the US dollar. Due to this strength, the foreign exchange reserves also increased by $ 5.5 billion. However, while there is good news for india on the foreign exchange reserves front, there is bad news related to this for neighboring country Pakistan. Actually, there has been a decline in Pakistan's foreign exchange reserves.
This decision of donald trump had an impact
When the newly elected President of America, donald trump, took power in the US, he decided not to impose tariffs immediately. This gave relief to the Asian currency. This is also one of the many reasons for the strength of the rupee. Let us tell you, according to the data released by the Reserve bank of india, India's foreign exchange reserves increased by $ 5.574 billion during the week ended january 24, 2025.
Pakistan's condition is bad
While India's pockets are full of dollars on one hand, neighboring country pakistan is facing a tremendous shortage of foreign exchange reserves these days. During the week ended january 24, 2025, a decrease of $ 137.2 million was recorded in Pakistan's foreign exchange reserves. Due to this shortage, Pakistan's foreign exchange reserves have now come down to $ 16.052 billion.
Increase in gold reserves and SDR also
The recent increase in India's gold reserves and Special Drawing Rights (SDR) has further strengthened financial stability. In the Union Budget 2025, Finance minister Nirmala Sitharaman proposed a reduction in import duty on gold and precious metals, which is expected to increase their demand in the domestic market. At present, India's gold reserve has increased to more than 800 tonnes, which has emerged as a safe investment option amid global economic uncertainties. Meanwhile, SDR has also increased, strengthening India's international financial position.
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