India's forex reserves dip by $1.98 bn

India’s foreign exchange reserves declined by $1.98 billion to $247.29 billion in the week ended March 6, 2009, on account of revaluation of international currencies against US dollar and continued liquidation of investments in securities by overseas institutional investors.

In rupee terms, the foreign exchange reserves rose by Rs 8,452 crore to Rs 12,73,041 crore.

The foreign currency assets were down by $1.98 billion to $236.72 billion. The reserve position with International Monetary Fund (IMF) rose by $2 million to $0.818 billion. The value of gold reserves remained unchanged at $9.74 billion.

The foreign exchange reserves have declined by $62.43 billion since the end of March 2008. The fall in reserves since end of December 2008 is $8.6 billion.

While the rupee has depreciated against the dollar, the Reserve Bank of India’s action contain fall remains limited. Foreign investors continued to cut their exposure to Indian securities during the week under review.