Sources of Variation in Foreign Exchange Reserves in India: 2008-09 - आरबीआय - Reserve Bank of India
Sources of Variation in Foreign Exchange Reserves in India: 2008-09
Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for 2008-09 on its website (www.rbi.org.in). On the basis of these data, sources of variation in foreign exchange reserves during 2008-09 have been compiled. Sources of Variation in Foreign Exchange Reserves: 2008-09 During 2008-09, there was a decline in foreign exchange reserves. The variation in the main components of foreign exchange reserves during 2008-09 are set out in Table 1.
The foreign exchange reserves (including the valuation effects) declined by US$ 57,738 million during 2008-09 as against an increase of US$ 110,544 million during 2007-08 (Table 2). On balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves declined by US$ 20,080 million during 2008-09 as against an increase of US$ 92,164 million during 2007-08. The valuation loss, reflecting the depreciation of major currencies against the US dollar, accounted for US$ 37,658 million during 2008-09 as against a valuation gain of US$ 18,380 million during 2007-08. Accordingly, valuation loss during 2008-09 accounts for 65.2 per cent of the total decline in foreign exchange reserves. Apart from the current account deficit, outflows under portfolio investments, banking capital and short-term trade credits were the other major sources contributing to decline in foreign exchange reserves during 2008-09. Ajit Prasad Press Release : 2008-2009/2118 |