<h1>Foreign exchange reserve management prioritises purchasing power preservation, liquidity and risk minimisation through conservative FCA investments.</h1> Management of foreign exchange reserves focuses on preserving purchasing power, minimizing risk and volatility, and maintaining liquidity. The reserves include foreign currency assets, gold, SDRs and the IMF reserve tranche; their level largely reflects Reserve Bank of India intervention to stabilise the rupee. The Reserve Bank holds FCAs in major convertible currency instruments-deposits with central banks, the BIS, top rated commercial banks, and sovereign and supranational debt securities-while the Government and RBI coordinate monitoring and policy responses.