According to the RBI Data, Indias foreign-exchange reserves rose past$ 400 billion for the first time ever, strengthening policymakers buffers ahead of an expected reduction in US stimulus. Who is present Governor of RBI?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

According to the RBI Data, India’s foreign-exchange reserves rose past$ 400 billion for the first time ever, strengthening policymakers’ buffers ahead of an expected reduction in US stimulus. Who is present Governor of RBI?

A	Arvind Mayaram
B	Raghuram Rajan
C	Urjit Patel
D	YV Reddy

Explanation:

Detailed explanation-1: -The Reserve Bank has the mandate to invest up to USD 5 billion, in the bonds issued by the India Infrastructure Finance Company (UK) Limited. As at end of September 2022, the amount invested in such bonds stood at USD 1.323 billion.

Detailed explanation-2: -RBI holds its own reserve of foreign exchange. When the foreign exchange rate becomes very high, the RBI can sell currency from its reserve in the market. This will lead to an increase in the supply of foreign currency in the market. The exchange, as a result, will decline.

Detailed explanation-3: -The RBI said last month that foreign exchange reserves worth $564.1 billion as on December 9 accounted for 9.2 months of imports projected for the current financial year. The level of reserves in September 2021 had accounted for close to 15 months of imports.

Detailed explanation-4: -RBI has an important role to play in regulating & managing Foreign Exchange of the country. It manages forex and gold reserves of the nation. On a given day, the foreign exchange rate reflects the demand for and supply of foreign exchange arising from trade and capital transactions.

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