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Forex reserves grow 10.7% to $279 bn in FY10

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 4:14 AM IST

The foreign exchange reserves went up by 10.75 per cent during the last fiscal to stand at $279.1 billion due to the valuation gain from a falling US dollar and increase in the inflow of investments and deposits.

The country had a forex reserve of $252 billion on March 31, 2009, says the the Reserve Bank of India's (RBI) half-yearly report on management of foreign exchange reserves released today.

"The valuation gain, reflecting the depreciation of the US dollar against major international currencies, accounted for $13,631 million during 2009-10...Accordingly, valuation gain during 2009-10 accounts for 50.2 per cent of the total increase in forex reserves.

"Besides the valuation gain, inflows under foreign investments and NRI deposits and special drawing rights allocations by IMF have also contributed to the rise in forex reserves in 2009-10," the RBI said.

The foreign currency assets maintained as a multi-currency portfolio comprising major currencies, also went up by 5.51 per cent last fiscal and stood at $254.7 billion, as against $241.4 billion in March 31, 2009.

Foreign direct investments during 2009-10 stood to $19.7 billion, up 12.57 per cent over $17.5 billion in the previous fiscal.

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Portfolio investments, including foreign institutional investments reached $32.4 billion. In the previous fiscal ending March 31, 2009, the country, however, saw a departure of portfolio investments to the tune of $14 billion.

Outstanding NRI deposits stood at $47.9 billion as on March 31 this year. In the previous fiscal ending, outstanding NRI deposits had stood at $41.6 billion.

The central bank has been compiling and publishing its half-yearly reports on management of foreign currency reserves since 2003. The latest report is the 14th in the series released by it.

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First Published: Aug 04 2010 | 10:22 PM IST

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