Forex reserves plunge $14.8 billion in H1 y-o-y: RBI

The foreign exchange reserves declined by a whopping $14.8 billion in the first half of the current financial year, which includes valuation effect of $4.1 billion, the Reserve Bank said in statement.

 

"The foreign exchange reserves in nominal terms, including the valuation effects, declined by $14.8 billion (to $276.26 billion as of September 27) during April- September as against an increase of $0.4 billion during the same period preceding year," the release said.

 

As of the week ended September 27 this year, the forex reserves fell by $1.12 billion to $276.26 billion as foreign currency assets fell sharply by nearly $1.3 billion, the Reserve Bank said today.

 

The RBI said the valuation loss was primarily due to appreciation of the dollar against all major currencies.

 

"The valuation loss, reflecting the appreciation of the US dollar against major currencies, amounted to $4.1 billion during April-September as against marginal gain of $0.1 billion during the same period of preceding year," the apex bank said.

 

As per the data released by RBI, forex reserves stood at $286.26 billion as of November 22, 2013 on the back of a massive $25 billion inflows from the two dollar swap windows that the RBI opened in September, which as of November 30 jumped to $34 billion, when these windows were shut.

 

Referring to sources of variation, the apex bank pointed out that while current account deficit came down to $27 billion in April-September this fiscal from $38.2 billion reported in the same period of previous fiscal, balance on capital account fell to $16.2 billion from $38.6 billion reported a year earlier.

 

Variation due to valuation changes was at a negative USD4.1 billion in first six months of FY14 from $0.1 billion reported a year earlier.