is useful to take stock of india ’ s macroeconomic fundamentals and buffers, and assess them in the current and evolving conditions. first, india is widely perceived to be among the fastest growing major economies in the world in 2022 2, when the other major economies may encounter recession or considerable moderation in their growth momentum. the favorable growth differential of india provides confidence to investors. this is amply reflected in the surge of portfolio flows into india since july 2022. inflows in august alone at us $ 7. 5 billion are more than 16 world economic outlook update, july 2022, imf. times the net inflows in july. second, the recent softening of commodity prices and supply chain pressures have eased the terms of trade shock that india faced in the aftermath of the pandemic and the war. with the consequent easing of imported inflation pressures, india ’ s cpi inflation has peaked in april 2022. further, the average indian basket crude price in august at usd 97. 4 per barrel has turned out to be lower than what we had assumed for the full year - usd 105 per barrel - in the monetary policy resolution of august 5. in fact, india ’ s inflation is lower than a large number of its trading partners. third, the shift in the commodity price outlook is also altering the assessment of india ’ s current account deficit in 2022 - 23, which is now expected to remain well within sustainable levels. fourth, at a time when food security is threatened the world over by shortages and soaring prices, india ’ s large buffer stocks of food grains supplement domestic supply and assure food security domestically. fifth, india ’ s foreign exchange reserves of us $ 561 billion ( as on august 26 ) provide a cushion against external shocks, as is being demonstrated on a day - to - day basis. moreover, the reserves are also reinforced by forward assets. sixth, the health of our banking system is sound. it is well capitalised and well provisioned, with improved asset quality. this constitutes a key pillar of financial stability and is expected to provide positive spillovers for the financial markets. 6. reflecting these fundamental factors, the indian rupee has moved in an orderly manner in the current financial year so far. it has held its own in a world of sharp depreciation across other eme and ae currencies. while the us dollar has appreciated by 11. 8 per cent during the current financial year so far, the inr

their primary function, namely to collect funds from their owners and distribute it to borrowers. to be more precise, the main function of banks is to facilitate and finance activities associated with the supply of goods and services to the people ; more specifically “ real ” activities. therefore, financing activities through sharia banking are closely linked to real sector development. moreover, speculation and gambling, the main culprits behind the on - going crisis, are not tolerated. thus, by design, the islamic financial system can instill greater stability in an economy. and, if implemented correctly, the islamic financial system can provide an optimal risk management system. sharia financial system performance ladies and gentlemen, the potential role of sharia financial institutions in the economy has been discussed on numerous occasions. according to the banker magazine in 2007, sharia - compliant assets worldwide have grown by almost 30 % per annum in recent years. such growth outstrips most other business segments in financial services. in 2008, sharia financial assets worldwide reached $ 643 billion and are expected to exceed $ 1 trillion by 2010. in fact, there are currently more than 400 financial institutions offering sharia compliant products globally, including sukuk, which has created significant demand in the market over the last five years. countries like united arab emirates, saudi arabia and malaysia are competing to become centers of islamic finance. in such a competitive environment, indonesia also has a great opportunity to advance itself as the center of islamic finance. as the most populace muslim country on the planet, with a population of more than 237 million, indonesia is undoubtedly a promising market. since the establishment of its first islamic bank in 1992, the sharia industry in indonesia has exhibited relatively robust growth. sharia banking is in its infancy since the establishment of the first islamic bank in 1992, however, has demonstrated strong and steady growth. business volume has grown expansively, exceeding the growth rate of the banking industry as a whole. currently in indonesia there are three full islamic banks ( fibs ), 19 islamic banking units at conventional banks ( ibus ), and 92 islamic rural banks. as a whole, the industry is supported by 531 islamic bank offices currently operating throughout indonesia ( 288 fibs, 121 ibus and 92 rural banks ). the sharia banking industry has amassed total assets amounting to rp50 trillion ( usd 4. 2 billion ), or 2. 1 % of all bank assets in indonesia. this share has increased steadily from previous years :