Forex reserves dip $1.84 bn

India’s foreign exchange reserve dipped by $1.84 billion to $249.70 billion in the week ended February 13 mainly on account of the revaluation in the foreign currency assets.

According to the latest data from the Reserve Bank of India (RBI), foreign currency assets declined by $1.839 billion to $239.98 billion during the week.

Special Drawings Right reduced by $2 million, while gold remained unchanged. During the week, the reserve position with the IMF declined marginally by $1 million to $830 million.

Foreign currency assets expressed in US dollars includes the effect of appreciation and depreciation of currencies such as euro, sterling, pound and the Japanese Yen held in the reserve.

In rupee terms, the reserve declined by Rs 9,209 crore to Rs 12,16,767 crore during the period. The currency remained flat at 48.68 levels. Foreign institutional investors bought stocks worth $110.50 million in the equity market.

India’s foreign exchange reserves contracted since RBI had to provide dollar liquidity to the market, which almost froze after the collapse of Lehman Brothers in September 2008, creating acute resource shortage.