The Increase Of Foreign Exchange Reserves And It's Impact On Foreign Economic Relation Of India

Since the economic reform in 1991,Indian foreign exchange reserves keeps on increasing rapidly, at the end of 2005, Indian foreign exchange reserves is 137.2bn, India occupies sixth position in the world in terms of foreign exchange reserves, it has excited a lot of public attention. A plenty of foreign exchange reserves has enhanced Indian economic strength and raised it's international standing, keeping rupee's stabilization, at the same time it has active impact on foreign economic relation of India .The research on Indian foreign exchange reserves increasing rapidly will help us to understand the development of foreign economic relation of India. The paper is made up of three parts :The first part is about the summarize of international reserves ,the author mainly analyzed the definition of international reserves, the constitution of international reserves ,the function of international reserves and the involvement of the system of international reserves .The second part is about basic status of Indian foreign exchange reserves . At first I reflect the history of balance of payment and foreign exchange reserves ,then analyze resource and specialty of accretion to Indian foreign exchange reserves from the angle of balance of payment , and comprehensively analyze the reason of increase of foreign exchange reserves .the third part is about what active influence the increase of foreign exchange reserves exert on foreign economic relation of India .I analyze what active influence the increase of foreign exchange reserves exert on the financial...