The Hindu : Business : Forex reserves cross $112 b

Online edition of India's National Newspaper
Sunday, Apr 11, 2004

Business

Business

Forex reserves cross $112 b

By Our Corporate Reporter

CHENNAI, APRIL 10. India's foreign exchange reserves crossed the $112 billion mark to $112.680 billion during the week ended April 2, 2004 registering rise of $1.068 billion in a week, according to the latest weekly statistical supplement of the Reserve Bank of India.

The rise was mainly due to an increase of $ 1.05 billion to $107.175 billion under forex assets.

A fresh rise in forex inflows, export remittances and revaluation of dollar were the factors responsible for the upsurge in forex reserves.

While gold reserves rose by $ 8 million to $4,198 billion, special drawing rights remained unchanged at $2 million.

In keeping with the international best practice, the RBI has, from the week ended April 2, included India's reserve position in the International Monetary Fund, called the Reserve Tranche Position (RTP) in the foreign exchange reserves. Foreign asses held in the form of RTP with IMF are akin to other components of foreign exchange reserves and are given a rate of return by the IMF. They can also be used, when required, to deal with any balance of payments needs.

India was selected to become a member of the Financial Transaction Plan (FTP) of the IMF from the quarter September-November 2002 in view of its strong balance of payments and comfortable forex reserves position.

India's Reserve Tranche Position (RTP) with the International Monetary Fund (IMF) rose by $10 million to $1.315 billion, according to the RBI.

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