Forex reserves increase to $167.1bn
Foreign exchange (forex) reserves rose $939m during the week ended on October 27, partly on account of revaluation of reserves.
By TNN |
MUMBAI: Foreign exchange (forex) reserves rose $939m during the week ended on October 27, partly on account of revaluation of reserves.
According to Reserve Bank of India’s (RBI) figures released in its weekly statistical supplement (WSS), forex reserves, including gold and SDR, rose $939m to touch $167.1bn.
While foreign currency assets rose $932m, the reserve tranche position with IMF increased $6m. The value of gold and SDR in reserves remained unchanged during the week. Foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies (such as Euro, Sterling, Yen) held in reserves, according to RBI.
The reserves growth during the current year has been significantly higher than last year. Reserves rose $15.5bn since March this year as against $2.3bn in the same period a year ago.
In the debt market, interest rates on short-term instruments — certificate of deposits (CDs) and commercial paper (CPs) — moved up marginally. However, the interest in these instruments remains strong.
The issuance of CPs — tapped by corporates to meet their working capital requirements — amounted to Rs 1,733 crore during the fortnight ended October 15, taking the outstanding stock of CPs to Rs 23,361 crore.
The interest rate on CPs marginally moved up to 7-8.65% as against 7.10-9.25% in the previous fortnight. Sale of bulk deposits by banks or what is popularly known as certificate of deposits (CDs) continues to be strong. They raised Rs 1,821 crore during the fortnight ended September 15. The Centre has refrained from resorting to ways and means advances (WMA) — a temporary advance to meet its revenue mismatches.
The WMA balance for state governments was Rs 157 crore as on October 27. However, they had refrained from resorting to this advance from RBI in the previous week.
According to Reserve Bank of India’s (RBI) figures released in its weekly statistical supplement (WSS), forex reserves, including gold and SDR, rose $939m to touch $167.1bn.
While foreign currency assets rose $932m, the reserve tranche position with IMF increased $6m. The value of gold and SDR in reserves remained unchanged during the week. Foreign currency assets expressed in US dollar terms include the effect of appreciation/depreciation of non-US currencies (such as Euro, Sterling, Yen) held in reserves, according to RBI.
The reserves growth during the current year has been significantly higher than last year. Reserves rose $15.5bn since March this year as against $2.3bn in the same period a year ago.
In the debt market, interest rates on short-term instruments — certificate of deposits (CDs) and commercial paper (CPs) — moved up marginally. However, the interest in these instruments remains strong.
The issuance of CPs — tapped by corporates to meet their working capital requirements — amounted to Rs 1,733 crore during the fortnight ended October 15, taking the outstanding stock of CPs to Rs 23,361 crore.
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The interest rate on CPs marginally moved up to 7-8.65% as against 7.10-9.25% in the previous fortnight. Sale of bulk deposits by banks or what is popularly known as certificate of deposits (CDs) continues to be strong. They raised Rs 1,821 crore during the fortnight ended September 15. The Centre has refrained from resorting to ways and means advances (WMA) — a temporary advance to meet its revenue mismatches.
The WMA balance for state governments was Rs 157 crore as on October 27. However, they had refrained from resorting to this advance from RBI in the previous week.
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