Important to have adequate forex reserves: RBI

Foreign exchange reserves stood at $280 billion as on April 9, the Reserve Bank of India said.

Foreign exchange reserves stood at $280 billion as on April 9, the Reserve Bank of India said.

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During 2009-10, India's foreign exchange reserves increased by $27.1 billion to $279.1 billion, the RBI said in its Macroeconomic and Monetary Developments in 2009-10 released in Mumbai on Monday.

Foreign currency assets (FCAs) increased by $13.3 billion during the year.

Further the Reserve Bank purchased 200 tonnes of gold from the IMF as a part of its foreign exchange reserve management operations, it said.

"For dealing with external shocks transmitting through various accounts of the balance of payments, it is important to have adequate foreign exchange reserves," the RBI said.