Image Source: livemint.com
Both the countries had a rise in their foreign-exchange for months before falling in recent months. India's foreign currency holding fell by $4.3 bn as of March 5 which lowered the holdings to $580.3 bn. Russia had a sharp falling which took its holding to $580.1 bn. Currently, China has the largest holding followed by Japan and Switzerland on the IMF table.
Foreign-exchange helps in clearing debts of the government and help in cushioning the falling economy. India can pay off its 18 months of imports from reserves which have been strengthened by the current-account surplus, rising inflows into the local stock market and FDI.
The RBI bought a net of $88 bn last year, central bank data shows. That makes the Indian Rupee the worst performer among Asia's major currencies and US Treasury put India on the watchlist for currency manipulation. Trump called China a currency manipulator in 2019. Lowering down the value of the currency helps in increasing the imports as products become cheap.