 "RBI remained net seller of dollars in Feb")
Continuing the trend of offloading dollars in the market, the Reserve Bank of India remained a net seller of the US currency in February. It was a net seller in January, too.
The scale of activity was much smaller in February than the earlier month. RBI sold US greenbacks worth $530 million in February as against $1.92 billion in January. It did not buy dollars from the market; in January, however, it did so for $375 million, according to RBI data.
The central bank was a net buyer in October-December 2013, too, as banks received huge dollar flows into their Foreign Currency Non-Resident (Banks) Deposit, backed by RBI’s offer to swap dollars.
The swap window was open till November 30, 2013. RBI also offered banks to swap their overseas borrowings. The two swap windows have mobilized a sum of $ 34 billion.
In December 2013 the Central bank purchased net $3.48 billion, down from $10.08 billion in November. It had mopped up $3.9 billion in October.
Its outstanding net forward sales in February 2014 stood at $31.31 billion, down from $31.84 billion at end of January.
Meanwhile, as for money flowing into NRI deposits, the pace moderated further in further February 2014. The net flows stood to $401 million in reporting month from $510 million in January 2014. The outstanding NRI deposits rose in February 2014 to $99.83 billion from $99.43 billion in January 2014.
Forex reserves rise
RBI says our foreign exchange reserves rose by $2.97 billion to $306.64 billion in the week ended April 4. Foreign currency assets were up $2.39 billion to $278.8 billion and the value of gold assets rose by $588 million to $21.56 billion, according to Reserve Bank of India data.
The scale of activity was much smaller in February than the earlier month. RBI sold US greenbacks worth $530 million in February as against $1.92 billion in January. It did not buy dollars from the market; in January, however, it did so for $375 million, according to RBI data.
The central bank was a net buyer in October-December 2013, too, as banks received huge dollar flows into their Foreign Currency Non-Resident (Banks) Deposit, backed by RBI’s offer to swap dollars.
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Under this swap window, banks could swap fresh FCNR(B) dollar funds (deposits with a maturity period of at least three years) at a fixed rate of 3.5 per cent a year.
The swap window was open till November 30, 2013. RBI also offered banks to swap their overseas borrowings. The two swap windows have mobilized a sum of $ 34 billion.
In December 2013 the Central bank purchased net $3.48 billion, down from $10.08 billion in November. It had mopped up $3.9 billion in October.
Its outstanding net forward sales in February 2014 stood at $31.31 billion, down from $31.84 billion at end of January.
Meanwhile, as for money flowing into NRI deposits, the pace moderated further in further February 2014. The net flows stood to $401 million in reporting month from $510 million in January 2014. The outstanding NRI deposits rose in February 2014 to $99.83 billion from $99.43 billion in January 2014.
Forex reserves rise
RBI says our foreign exchange reserves rose by $2.97 billion to $306.64 billion in the week ended April 4. Foreign currency assets were up $2.39 billion to $278.8 billion and the value of gold assets rose by $588 million to $21.56 billion, according to Reserve Bank of India data.