India's forex reserves rise again to $84.99 billion

Monday, 18 August 2003, 19:30 IST
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NEW DELHI: India's foreign exchanges reserves have climbed back to a high of $84.99 billion during the week ending August 8, after a $204 million dip in the previous week, the Reserve Bank of India (RBI) said Saturday. Inflows of $297 million of foreign currency assets and rise in India's reserve tranche position (RTP) with the International Monetary Fund (IMF) have helped the country to once more shore up its forex reserves to a level higher than in the week ending July 25, when the tally reached a record $84.90 billion level. In the subsequent week, the reserves dipped by $204 million largely due to depreciation of foreign currency assets by $133 million and gold assets by $70 million. The RTP had also dipped by $12 million during the week. In the week ending August 8, though there was no change in the gold reserves position, appreciation of foreign currency assets expressed in U.S. dollar terms, including effect of non-U.S. currencies saw the reserves rise by $297 million, India's central bank data showed. "Foreign exchange reserves do not include India's Reserve Tranche Position (RTP) with the International Monetary Fund (IMF)," the report said. In an address to the 14th National Assembly of Forex Association of India on Thursday in Mumbai, RBI Governor Bimal Jalan pointed out that India's foreign exchange reserves were now among one of the largest in the world. "The fact that India's balance of payments are showing positive trends - on the current as well as capital accounts - is a reflection of the increasing competitiveness of the Indian economy and strong confidence of the international community in India's growth potential," he said. Jalan said that for the first time after India's independence in 1947, "the fragility of the balance of payments is no longer a concern of policy makers. This is a highly positive development".
Source: IANS
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