Sources of Accretion to Foreign Exchange Reserves in India: April-June 2007 - આરબીઆઈ - Reserve Bank of India
Sources of Accretion to Foreign Exchange Reserves in India: April-June 2007
Background The Reserve Bank of India (RBI) had, on January 31, 2003, issued a Press Note on conclusions of a study conducted by its Department of Economic Analysis and Policy (DEAP) on Sources of Accretion to Foreign Exchange Reserves during April-November 2002. Subsequent to this, the RBI has been regularly updating and releasing information on ‘Sources of Accretion to Foreign Exchange Reserves’ through press releases which are available on the RBI website (www.rbi.org.in). Balance of payments (BoP) data for Q1 of 2007-08 (i.e. April-June 2007) are now available. These data have been released on RBI website (www.rbi.org.in) on September 28, 2007. On the basis of these data, sources of accretion to foreign exchange reserves have been compiled. Sources of Accretion to Foreign Exchange Reserves: April-June 2007 Major sources of accretion to foreign exchange reserves during the Q1 of 2007-08 have been foreign investment, External Commercial Borrowings (ECBs) and short-term credit. The accretion to the foreign exchange reserves was US $ 11.2 billion on a BoP basis (excluding valuation effects) during April-June 2007. Valuation gain, reflecting the appreciation of major currencies against the US dollar, accounted for an increase of US $ 3.0 billion in total reserves during the Q1 of 2007-08 as against a valuation gain of US $ 4.9 billion during the corresponding period of previous year. The foreign exchange reserves increased by an amount of US $ 14.2 billion during April-June 2007 including the valuation effects against an increase of US $ 11.3 billion during April-June 2006. Alpana Killawala Press Release : 2007-2008/440 |