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Forex reserves decreased $1237 million to $300.863 billion

31 Dec 2011 Evaluate

According to the latest press release from the Reserve Bank of India (RBI), the country’s forex reserves decreased by $1237 million to $300.863 billion during the week ended December 23, 2011. The decrease in valuation of Foreign Currency Assets pulled the forex kitty lower during the reporting week.

Valuation of foreign currency assets decreased $1312 million in the week to $265.656 billion. This figure excludes investment worth Rs 2,003 crore/ $380 million invested in foreign currency denominated bonds issued by IIFC (UK). Further, foreign currency assets expressed in US dollar terms include the effect of appreciation /depreciation of non-US currencies (such as euro, sterling, yen) held in reserves.

The value of gold in the reserves remained unchanged to $28.041 billion during the week. This valuation includes Rs 31,463 crore ($6,699 million) reflecting the purchase of 200 metric tonne of gold from IMF on November 3, 2009.

SDRs’ (Special Drawing Rights) valuation, however, increased by $9 million to $4.448 billion in the week. This valuation is inclusive of SDR 3,082.5 million (equivalent to $4,883 million) allocated under general allocation and SDR 214.6 (equivalent to $340 million) allocated under special allocation by International Monetary Fund (IMF) done on August 28, 2009 and September 9, 2009, respectively.

The country’s reserve position in the IMF however witnessed a gain of $66 million during the week ended December 23, 2011 to $2.718 billion. Reserve position in the IMF, i.e., Reserve Tranche Position (RTP) which was shown as a memo item from May 23, 2003 to March 26, 2004 has been included in the reserves from the week ended April 2, 2004 in keeping with the international best practice.

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