Sources of Variation in Foreign Exchange Reserves Sources of Variation in Foreign Exchange Reserve - આરબીઆઈ - Reserve Bank of India
Sources of Variation in Foreign Exchange Reserves Sources of Variation in Foreign Exchange Reserve
Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for the fourth quarter (January-March) of 2009-10 and for the full year (April-March) 2009-10 on its website (www.rbi.org.in). On the basis of these data, sources of variation in foreign exchange reserves during 2009-10 have been compiled. Sources of Variation in Foreign Exchange Reserves: 2009-10 During 2009-10, there was an accretion to the foreign exchange reserves. Inflows under foreign investments and short term trade credits contributed significantly to the increase in foreign exchange reserves besides valuation gains. The sources of variation in the foreign exchange reserves are set out in Table 1.
The foreign exchange reserves (including the valuation effects) increased by US$ 27.1 billion during 2009-10 as against a decline of US$ 57.7 billion during 2008-09 (Table 2).
On a balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 13.4 billion during 2009-10 as against a decline of US$ 20.1 billion during 2008-09. The valuation gains, reflecting the depreciation of the US dollar against major currencies, accounted for US$ 13.6 billion during 2009-10 as against a valuation loss of US$ 37.7 billion during 2008-09. Accordingly, valuation gains during 2009-10 accounted for 50.4 per cent of the total increase in foreign exchange reserves. Ajit Prasad Press Release :2009-2010/1792 |