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Rbi forex reserves 2018

Rbi forex reserves 2018Foreign exchange reserves rise by $879.5 million to $413 billion: RBI. The country's reserve position with the IMF also increased by $2.3 million to $2.029 billion, the apex bank said. Press Trust of India | Mumbai Last Updated at June 15, 2018 22:21 IST. Forex reserves up by $488.2 mn to $401.385 bn. Forex reserves drop by $3.22 bn to $420.37 bn due to fall in FCAs. Forex reserves at life-time high of $424 bn as foreign currency assets rise. Foreign exchange reserves surge to new lifetime high of $409.4 billion. Forex kitty continues to scale new peaks, touches $414.78 bn: RBI data. India's foreign exchange reserves increased by $879.5 million to $413.109 billion in the week to June 8, helped by rise in foreign currency assets, the Reserve Bank data showed on Friday. In the previous week, the reserves had declined by $593.7 million to $412.230 billion. The reserves had touched a record high of $426.028 billion in the week to April 13, 2018. It had crossed the $400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating. In the reporting week, the foreign currency assets, a major component of the overall reserves, rose by $875.4 million to $388.391 billion. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves. Gold reserves remained unchanged at $21.189 billion in the reporting week, the data showed. The special drawing rights with the International Monetary Fund (IMF) rose by $1.8 million to $1.499 billion. The country's reserve position with the IMF also increased by $2.3 million to $2.029 billion, the apex bank said. Forex reserves: import cover fell to 10.8 months in December, says RBI. A customer walks past an advertisement for a foreign currency exchange facility at a bank in Mumbai August 19, 2013. | Photo Credit: Reuters.

Typically, 10 months of import cover is seen as stable for a currency. The adequacy of foreign exchange reserves, measured by import cover, declined to 10.8 months in December 2017, from 11.3 months at the end of March 2017, the Reserve Bank of India (RBI) said in a biannual report on exchange management. Total foreign exchange reserves were at $409 billion in December 2017 as compared with $370 billion as on March 2017. The reserves for the week ended June 29 stood at $406.1 billion, according to latest data released by the RBI. Import cover is an indicator for the currency’s stability. Typically, 10 months of import cover is seen as stable for the currency. The ratio of short-term debt to foreign exchange reserves, which was 23.8% at end-March 2017, remained at the same level at end-December 2017. The ratio of volatile capital flows to foreign exchange reserves declined from 88.1% at end-March 2017 to 86.9% at end-December 2017. “The Reserve Bank holds 560.32 tonnes of gold, of which 268.01 tonnes are held overseas in safe custody with the Bank of England and the Bank for International Settlements (BIS). Gold as a share of the total foreign exchange reserves in value terms (USD) stood at about 5% as at end-March, 2018,” the RBI said. Of the foreign currency assets of $399.44 billion, $262.01 billion was invested in securities, $109.67 billion was deposited with other central banks and the BIS and $27.76 billion was held with commercial banks. India’s forex reserves are falling $2 billion per week as RBI fights to save sliding rupee. The dip in forex reserves has been due to the intervention of the central bank to arrest the slide in the rupee.

New Delhi: India’s foreign exchange reserves have fallen by about $2 billion per week for seven weeks now but top government officials said they were monitoring the trend and there is no cause for alarm. Economic affairs secretary Subhash Chandra Garg said funds would be raised through foreign currency non-repatriable (FCNR) deposits or even sovereign bonds, if the need arose. In September 2013, then RBI governor Raghuram Rajan had raised funds through FCNR bonds and the scheme fetched $30 billion. India’s forex reserves crossed the $400 billion mark for the first time last September but have remained volatile since. They declined to $407.81 billion on 22 June from a record high of $426 billion in April, largely on the back of a weakening rupee. Insiders said that the dip in forex reserves has been due to the intervention of the central bank to arrest the slide in the rupee. “We are monitoring (the situation) but there is no need to take any action now,” said an RBI official. “Our forex reserves are adequate and this dip does not call for any policy action at this point. This is due to global developments. There is no need for any knee jerk reaction,” said another finance ministry official who spoke on condition of anonymity.

“This is a natural phenomenon and this is most likely happening due to RBI’s stepping in by selling dollars to support the rupee. No amount of reserves is ever adequate,” said Soumya Kanti Ghosh, chief economic adviser, State Bank of India group. The reserves, he added, had crossed $400 billion only last year. China’s foreign exchange reserves in May stood at $3,111 billion. However, its reserves in April was at $3,125 billion. High foreign exchange reserves not only help in international payments but also provide a cushion against exchange rate risks and boost sentiments. The rupee hit a record low last Thursday to cross 69 to a dollar amid rising global oil prices and a trade war between the US and China. Although it recovered a day later amid a recovery in global equity markets, analysts expect it to touch the 70 mark soon. Developments such as rising oil prices, tightening of global liquidity coupled with a strong dollar and an increase in US interest rates, they say, are expected to continue to put pressure on the rupee. Forex reserves fell $11 bn in a month: RBI. Central bank steps up dollar sales. The country’s foreign exchange reserves fell $2.6 billion for the week ended May 18 to $415 billion, latest data released by Reserve Bank of India showed. In the last one month, foreign exchange reserves fell by about $11 billion as the central bank stepped up intervention in the currency market as rupee came under pressure following rise in crude oil prices. Rising oil prices pose threat to macroeconomic stability as the country imports 80% of its crude requirements.

Foreign exchange reserves touched a record high of $426 billion for the week ended April 13, 2018. According to the latest data, fall in foreign reserves is primarily due to decline in foreign currency assets. Rupee, which is the worst performing Asian currency this year, strengthened against the dollar as crude oil prices fell on the prospect of supply increase. On Friday, the rupee posted its biggest single-session gain, as it appreciated by 56 paise or 0.9% to close at 67.78 against the dollar amid a rise in domestic stocks. This is the best single-day rise for the rupee since March 14, 2017. The rupee on Friday touched a high of 67.70 in the intra-day trade. Sign up to receive our newsletter in your inbox every day! RBI to recoup forex reserves despite being put on US watch list: Report. According to BofA Merrill Lynch Global Research report, RBI will follow an asymmetric forex policy of buying forex when the USD is weakening and allowing Rs 65-66USD when it strengthens. The Reserve Bank is expected to recoup forex reserves despite India being put on currency manipulator watch list by the US, says a report. According to BofA Merrill Lynch Global Research report, RBI will follow an asymmetric forex policy of buying forex when the USD is weakening and allowing Rs 65-66USD when it strengthens. "We continue to expect the Reserve Bank of India (RBI) to recoup forex reserves if it can, despite being put on the US Treasury Report's currency manipulator watch list," the report noted.

Last week, the US added India to the currency practices and macroeconomic policies monitoring list, saying New Delhi increased its purchase of foreign exchange over the first three quarters of 2017, which does not appear necessary. Cabinet note soon for stake purchase by major ports in Dredging Corporation. FPIs stay bullish on India; pour in Rs 6,700-cr in August. UP chief secretary meets investors in Noida; agreement on Rs 10,000 cr worth projects. India is the sixth addition to the watch list which comprises China, Japan, South Korea, Germany and Switzerland. According to the authorities' data, India has generally been a net purchaser of foreign exchange since late 2013, when the RBI sought to build a stronger external buffer in the wake of large emerging market outflows globally. The global brokerage cited three reasons for the RBI to recoup forex reserves. Firstly, forex reserves are inadequate. Secondly, RBI's forex intervention is unlikely to touch 2 per cent of GDP required to be named currency manipulator; and thirdly, the government will also likely want the RBI to accumulate forex reserves to maintain a stable INR. According to BofAML forex strategists, rupee is expected to be around Rs 64.25 per USD in December. Foreign exchange reserves rise by $879.5 million to $413 billion: RBI. The country's reserve position with the IMF also increased by $2.3 million to $2.029 billion, the apex bank said. Press Trust of India | Mumbai Last Updated at June 15, 2018 22:21 IST. Forex reserves up by $488.2 mn to $401.385 bn. Forex reserves drop by $3.22 bn to $420.37 bn due to fall in FCAs. Forex reserves at life-time high of $424 bn as foreign currency assets rise.

Foreign exchange reserves surge to new lifetime high of $409.4 billion. Forex kitty continues to scale new peaks, touches $414.78 bn: RBI data. India's foreign exchange reserves increased by $879.5 million to $413.109 billion in the week to June 8, helped by rise in foreign currency assets, the Reserve Bank data showed on Friday. In the previous week, the reserves had declined by $593.7 million to $412.230 billion. The reserves had touched a record high of $426.028 billion in the week to April 13, 2018. It had crossed the $400-billion mark for the first time in the week to September 8, 2017, but has since been fluctuating. In the reporting week, the foreign currency assets, a major component of the overall reserves, rose by $875.4 million to $388.391 billion. Expressed in US dollar terms, the foreign currency assets include the effect of appreciation or depreciation of the non-US currencies such as the euro, the pound and the yen held in the reserves. Gold reserves remained unchanged at $21.189 billion in the reporting week, the data showed. The special drawing rights with the International Monetary Fund (IMF) rose by $1.8 million to $1.499 billion. The country's reserve position with the IMF also increased by $2.3 million to $2.029 billion, the apex bank said. Rbi forex reserves 2018. India’s gold holding in forex reserves rose to 560.3 tonnes by the end of March 2018. The Reserve Bank of India (RBI) has added 2.5 tonnes of gold to foreign exchange reserves for the quarter ended March 2018 in two tranches. This is the first such addition after 2009, when the central bank bought 200 tonnes of the yellow metal from the International Monetary Fund (IMF) at $1,032 per tonne.

According to IMF data (updated till March 2018), India’s gold holding in forex reserves rose to 560.3 tonnes by the end of March 2018. The RBI did not respond to email queries till the time of going to press. “The addition looks like a pilot purchase. The net impact is that reserves are up marginally. This is not significant and does not imply strategic addition, unless we see a creeping acquisition trend,” a source said. “This was a decision taken by the government before the Budget presentation. But due to the sensitivity of the issue, it was not announced,” another source added. Globally, central banks, including in Russia and Turkey, add gold to forex reserves to hedge against the dollar. The Turkish central bank announced a policy in May 2017, replacing the dollar as a prominent asset in its foreign exchange reserves. Turkey’s commercial banks also hold huge gold deposits.

These are placed with the central bank under the reserve option mechanism. The country is the 11th largest gold-holding country in forex reserves at 595.5 tonnes. Russia has been buying over 200 tonnes of gold per year since the last three years to add to its forex reserves and reduce dollar dependence. Its reserves are bigger than China’s, making them the sixth largest in the world. Russia and China buy most of their gold locally since they are prominent gold miners. According to sources, India could add gold mobilised by the Gold Monetising Scheme to its forex reserves. The RBI was likely to have purchased gold in March from two London-based banks, they added. Gold buying by central banks has been on the rise in the last few years, with 350 to 400 tonnes of gold being bought annually. China buys gold locally, but announces with a lag. However, according to GFMS Thomson Reuters, China will buy gold this year to add to its reserves after two years. Photograph: Ajay VermaReuters. Forex Reserves Current Affairs.

According to the Reserve Bank of India (RBI), India’s forex (foreign exchange) reserves have touched record high of $424.864 billion in April 2018. The surge was due to massive spike in foreign currency assets (FCAs), a key component of the reserves. The forex reserve had crossed $400-billion mark for the first time in September 2017, but has since been fluctuating. The forex are reserve assets held by a central bank in foreign currencies. It acts as buffer to be used in challenging times and used to back liabilities on their own issued currency as well as to influence monetary policy. Almost all countries in world, regardless of size of their economy, hold significant foreign exchange reserves. The components of India’s FOREX Reserves include Foreign currency assets (FCAs), Gold Reserves, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF) . FCAs constitute largest component of Indian Forex Reserves and are expressed in US dollar terms . FOREX Reserves in April 2018. Foreign currency assets (FCAs): $399.776 billion. Gold reserves: $21.484 billion. SDRs with IMF: $1.534 billion .

Reserve position with the IMF: $2.070 billion. Forex Reserves scale record high of $409.366 billion in December 2017. According to Reserve Bank of India (RBI), India’s foreign exchange (Forex) reserves have scaled to fresh record high of $409.366 billion as on December 29, 2017. The surge was due to massive spike in foreign currency assets, which is key component of the reserves. The forex are reserve assets held by a central bank in foreign currencies. It acts as buffer to be used in challenging times and used to back liabilities on their own issued currency as well as to influence monetary policy. Almost all countries in world, regardless of size of their economy, hold significant foreign exchange reserves. The components of India’s FOREX Reserves include Foreign currency assets (FCAs), Gold, Special Drawing Rights (SDRs) and RBI’s Reserve position with International Monetary Fund (IMF) . FCAs constitute largest component of Indian Forex Reserves. As on 29 December 2017, FCAs which form key component of reserves, rose by $4.42 billion from the previous week to $385.103 billion.

FCAs are maintained in major currencies like euro, US dollar, pound sterling, Japanese yen etc. Movement in FCA occur mainly on account of purchase and sale of foreign exchange by RBI, income arising out of deployment of Forex reserves, external aid receipts of government and revaluation of assets. During this period, Gold reserves remained stable at $20.716 billion. Special drawing rights (SDR) from IMD rose by $8.9 million from the previous week to $1.511 billion. SDR is an international reserve asset created by IMF and allocated to its members in proportion of their quota at IMF. The Reserve Position in the IMF rose by $12.1 million to $2.035 billion. Rbi forex reserves 2018. SME Times News Bureau | 18 Aug, 2018 A strong US dollar and subsequent interventions by the country's central bank to stabilise the rupee drained over $1.80 billion from India's foreign exchange (forex) reserves, analysts said on Friday. As per the Reserve Bank of India (RBI) weekly statistical supplement, the overall forex reserves plunged by $1.82 billion during the week ended August 10 to $400.88 billion from $402.70 billion reported for the week ended August 3. According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the decline in Forex reserves can be attributed to the RBI's intervention to stem the decline in rupee's fall. The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit. India's forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI's position with the International Monetary Fund (IMF). In recent days, factors such as geo-political developments, wider trade deficit, along with outflow of foreign funds have pulled the Indian rupee to fresh record intra-day and closing lows. On Thursday, the Indian rupee had plunged to an intra-day low level of 70.39-40 -- its lowest ever mark -- against the greenback prompting automobile manufacturers and other import dependent sectors to raise prices. It settled at a record closing low of 70.16 against the US dollar on Thursday.

Segment-wise, FCAs -- the largest component of the Forex reserves -- receded by $1.94 billion to $376.26 billion during the week under review. Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. The individual movements of these currencies against the US dollar impacts the overall reserve value. "A consistent decline in reserves show that the RBI is continuously intervening in the market to protect the rupee," Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers, told IANS. "Another reason is the fact that foreign currency assets include the effect of appreciation or depreciation of the currencies such as Euro, Pound etc held in the reserves. Since Euro and Pound both have depreciated sharply in recent months, the fall in valuation is also the reason for decline in the reserves." However, the value of the country's gold reserves increased by $145.6 million to $20.69 billion. The country's SDRs' value slipped by $9.2 million to $1.46 billion, while the country's reserve position with the IMF inched down by $9.2 million to $2.45 billion. RBI's Efforts to Stabilise Rupee Hit Country's Forex Reserves.

Mumbai, Aug 17: A strong US dollar and subsequent interventions by the country's central bank to stabilise the rupee drained over $1.80 billion from India's foreign exchange (forex) reserves, analysts said on Friday. As per the Reserve Bank of India (RBI) weekly statistical supplement, the overall forex reserves plunged by $1.82 billion during the week ended August 10 to $400.88 billion from $402.70 billion reported for the week ended August 3. According to Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities, the decline in Forex reserves can be attributed to the RBI's intervention to stem the decline in rupee's fall. The RBI is known to enter the markets via intermediaries to either sell or buy US dollars to keep the rupee in a stable orbit. India's forex reserves comprise of foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs) and the RBI's position with the International Monetary Fund (IMF). In recent days, factors such as geopolitical developments, wider trade deficit, along with outflow of foreign funds have pulled the Indian rupee to fresh record intra-day and closing lows. On Thursday, the Indian rupee had plunged to an intra-day low level of 70.39-40 -- its lowest ever mark -- against the greenback prompting automobile manufacturers and other import-dependent sectors to raise prices. It settled at a record closing low of 70.16 against the US dollar on Thursday. Segment-wise, FCAs -- the largest component of the Forex reserves -- receded by $1.94 billion to $376.26 billion during the week under review. Besides the US dollar, FCAs consist of nearly 20-30 per cent of major global currencies. The individual movements of these currencies against the US dollar impacts the overall reserve value. "A consistent decline in reserves show that the RBI is continuously intervening in the market to protect the rupee," Rushabh Maru, Research Analyst, Anand Rathi Shares and Stock Brokers, told IANS. "Another reason is the fact that foreign currency assets include the effect of appreciation or depreciation of the currencies such as Euro, Pound etc held in the reserves. Since Euro and Pound both have depreciated sharply in recent months, the fall in valuation is also the reason for the decline in the reserves." However, the value of the country's gold reserves increased by $145.6 million to $20.69 billion. The country's SDRs' value slipped by $9.2 million to $1.46 billion, while the country's reserve position with the IMF inched down by $9.2 million to $2.45 billion.



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