Question
Which institution or entity is custodian of Country’s
foreign exchange reserve ?Solution
The foreign exchange reserves are assets held by the central bank in different currencies, such as the US dollar, euro, pound sterling, etc. These reserves play an important role in maintaining the stability of the country's currency and meeting international payment obligations. The RBI manages the foreign exchange reserves in accordance with the Foreign Exchange Management Act (FEMA) and the guidelines of the International Monetary Fund (IMF).
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