Sources of Variation in Foreign Exchange Reserves in India During April-December of 2010-11 - ربی - Reserve Bank of India
Sources of Variation in Foreign Exchange Reserves in India During April-December of 2010-11
Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for Q3 of 2010-11 (October-December 2010) on its website (www.rbi.org.in). On the basis of these data along with the revised data for earlier quarters, this note on sources of variation in foreign exchange reserves during April-December 2010 has been compiled. Sources of Variation in Foreign Exchange Reserves: April-December 2010 During April-December 2010, there was an accretion to the foreign exchange reserves.The sources of variation in the foreign exchange reserves are set out in Table 1.
On a balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 11.0billion during April-December 2010 as compared with an increase of US$ 11.3billion during April-December 2009. The foreign exchange reserves (including the valuation effects) increased by US$18.3 billion during April-December 2010 as compared with an increaseof US$ 31.5 billion during April-December 2009 (Table 2).
The valuation gains, reflecting the depreciation of the US dollar against major currencies, accounted for US$ 7.3 billion during April-December 2010 as compared with valuation gains of US$ 20.2 billion during April-December 2009. Accordingly, valuation gains accounted for 39.9 per cent of the total increase in foreign exchange reserves during April-December 2010. Alpana Killawala Press Release : 2010-2011/1413 |