Foreign exchange reserves are foreign currency assets held by central banks. They include foreign securities, gold, special drawing rights from the IMF, and reserve positions. Central banks hold reserves to maintain stable currencies, reduce economic shocks, and facilitate international payments and hedge exchange rate risks. India's foreign exchange reserves have grown substantially over time, from $1.8 billion in 1951-52 to $2.94 trillion in 2015-16, allowing the country to grow faster than other economies.

1. 'FOREIGN EXCHANGE
RESERVES'

2. Definition:
Forex reserves are foreign
currency assets held by the
central banks of countries.

3. Deposits of a foreign currency held by a
central bank. Holding the currencies of
other countries as assets allow
governments to keep their currencies
stable and reduce the effect of economic
shocks. The use of foreign exchange
reserves became popular after the
decline of the gold standard.

4. Description:
These assets include foreign
marketable securities, monetary
gold, special drawing rights
(SDRs) and reserve position in
the IMF. The main purpose of
holding foreign exchange
reserves is to make
international payments and
hedge against exchange rate
risks

5. YEAR Foreign exchange(in $ million)
1951-52 1,815
1961-62 624
1971-72 1,194
1981-82 4,390
1991-92 9,220
2001-02 54,106
2015-16 2,94,398

8. Analysis of the data

9.  Foreign exchange reserves,
which plummeted in 1991
but burgeoned year on year.
 In the year of 1951-52 the
foreign exchange reserves
was only 1,815 $ million.

10.  We can see that in 1961-62 it
lowered into 624 $ million.
 After ten years in 1971-72 forex
increased a small amount. It
became 1,194 $ million.

11.  Forex increased to 4,390 $
million by the year of 1981-
82.
 In the year of 1991-92 foreign
exchange reserves was 9,220.

12.  Foreign exchange reserves was 54,106
$ million in 2001-02.
 But we can see that now (2015-16)
foreign exchange reserves increased to
a large amount 2, 94,398 $ million.

13. Conclusion
High forex reserves give
the country India a main
support to grow at a much
faster pace than other
developed economies.

14. THANK YOU
Priya k mohanan
Govt college Kattappana