Forex reserves dip to $294.38 bn.

India’s forex reserves declined to $294.389 billion as of March 30, from $295.140 billion in the previous week, the RBI said in its weekly statistical supplement on Friday. This is a drop of $742 million compared to the increase of $319 million in the previous week.

According to the data, in the year 2011-12, the reserves increased to the peak level of $320 billion in the first week of September, 2011 and reached its lowest at $292 billion in the second week of January, 2012. At the financial year-end, reserves are almost as same as it was in the beginning of the fiscal which was at $294.011 billion.

The reasons for decline are, inter alia, the revaluation effect and intervention in the domestic forex market, said the central bank.

“Movements in the Foreign Currency Assets occur mainly on account of purchases and sales of foreign exchange by the RBI, income arising out of the deployment of the foreign exchange reserves, external aid receipts of the central government and the effects of revaluation of the assets,” it added.

Source : indianexpress.com