Sources of Variation in Foreign Exchange Reserves in India: April-December 2009-10 - RBI - Reserve Bank of India
Sources of Variation in Foreign Exchange Reserves in India: April-December 2009-10
Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for Q3 of 2009-10 (October-December 2009) 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 2009 has been compiled. Sources of Variation in Foreign Exchange Reserves: April-December 2009 During April-December 2009, there was an accretion to foreign exchange reserves mainly on account of valuation gains. Also, inflows under foreign investments, Non-Resident Indian deposits and short-term trade credits have contributed significantly to the increase in foreign exchange reserves during April-December 2009. 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$ 31,485 million during April-December 2009 as against a decline of US$ 53,755 million during April-December 2008 (Table 2).
On balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 11,300 million during April-December 2009 as against a decline of US$ 20,380 million during April-December 2008. The valuation gains, reflecting the depreciation of the US dollar against the major currencies, accounted for US$ 20,185 million during April-December 2009 as compared with a valuation loss of US$ 33,375 million during April-December 2008. Accordingly, valuation gains during April-December 2009 accounted for 64.1 per cent of the total increase in foreign exchange reserves. Ajit Prasad Press Release : 2009-2010/1325 |