RBI: Foreign currency assets decrease by 19 billion dollars in 3 months

The capital market has also recorded exits of about 60,000 crores since April of this year. (Photo Express by Pradip Das)

India's foreign currency holdings have fallen by about $ 19 billion since last April following capital outflows and Reserve Bank intervention of India to stop the decline of the rupee against the dollar. During the week ended June 29, foreign currency badets, a major component of global reserves, decreased by $ 1.781 billion to $ 380.718 billion, according to data from the Reserve Bank. At the end of March 2018, total badets in foreign currency amounted to $ 399.44 billion, a decrease of $ 19 billion in three months. The RBI had sold dollars to stabilize the rupee that had fallen below 69 level last week. The capital market has also experienced exits of about 60,000 rupees since April 2009.

Overall, foreign exchange reserves reached a record $ 426.028 billion during the week ended April 13, 2018 decreased by 20 billion. Foreign exchange reserves declined from $ 1.757 billion to $ 406.058 billion during the week ended June 29 due to the fall in foreign currency holdings, according to RBI data. The previous week, reserves fell by $ 2.25 billion to $ 407.81 billion

. Reserves had crossed for the first time the $ 400 billion mark the week ended September 8, 2017, but have fluctuated since. At the same time, the RBI said that India's volatile capital flows, including cumulative portfolio inflows and outstanding short-term debt, declined during the nine-month period completed in December 2017.

Capital flows to foreign exchange reserves increased from 88.1% at the end of March 2017 to 86.9% at the end of December 2017, "said the RBI in its latest" Management Report. foreign exchange reserves ". At the end of December 2017, import coverage increased from 11.3 months at the end of March 2017 to 10.8 months. "The ratio of short-term debt / foreign exchange reserves, which was 23.8% at the end of March 2017, same level at the end of December 2017." According to the RBI, India's foreign exchange reserves, based on balance of payments (excluding valuation effects) rose by $ 30.3 billion in April. -December 2017 vs. $ 14.2 billion in April-December 2016. Nominal foreign exchange reserves (including valuation effects) increased by $ 39.1 billion between April and December 2017 against the US dollar. depletion of $ 1.3 billion same period of the previous year.

However, it did not disclose the return on foreign exchange badets deployed in securities of other countries, foreign banks and other central banks. "The valuation gain, mainly reflecting the depreciation of the US dollar against major currencies, amounted to $ 8.8 billion in April-December 2017 compared with a loss of $ 15.5 billion during the same period last year. the same period of the previous year ". ] For all the latest business news, download the Indian Express app