India’s foreign exchange reserves increased $2.8 billion to $255.16 billion for the week ended April 10 largely due to increased participation from foreign institutional investors (FII) and revaluation of currencies against the dollar.
According to Reserve Bank of India (RBI) data, foreign currency assets rose $3 billion to $244.60 billion. Foreign currency assets include the effect of appreciation or depreciation of the euro, the sterling and the yen held in reserves, but not the $250 million invested in foreign currency denominated bonds issued by IIFC.
During the week, the rupee has been appreciating on the account of the FII’s participation. The currency closed at 50.35 on April 2, 2009 against 50.60 on March 26, 2009.
The reserve position in the International Monetary Fund (IMF) rose $3 million to $985 million during the week, whereas the gold and special drawings rights remained unchanged.
The reserve money, which includes currency in circulation, bankers’ deposit with RBI and other deposits with the central bank, grew by 7.7 per cent on a year-on-year basis to Rs 9,29,404 crore at the end of April 3, 2009.
Source : Business Standard