Forex reserves up nearly USD 2 bn to USD 476.5 bn: Das

Reserve Bank Governor Shaktikanta Das on Friday said the country's foreign exchange reserves have risen by nearly USD 2 billion to USD 476.5 billion as of April 10.

He said the forex cover will be enough for 11.8 months or nearly a year of the country's imports.

The reserves, which are being pointed out as one of the biggest assets in the fight against challenges posed by the COVID-19 pandemic, had stood at USD 474.66 billion for the week ended April 3, as per the last published data from RBI.

Governor Das said in February, net foreign direct investment was USD 2.9 billion as compared to USD 1.9 billion in the year ago period.

Similarly, the net foreign portfolio investment in equities was also higher at USD 0.4 billion in the April 1-9 period as against an inflow of USD 0.2 billion in the year-ago period.

Portfolio debt investment recorded an outflow of USD 0.7 billion as against net outflow of USD 0.9 billion a year ago, he said.

However, the 34.6 per cent contraction in exports in March has turned out to be "much more severe than during the global financial crisis", he said, adding that barring iron ore, all exporting sectors showed a decline in outbound shipments.

Merchandise imports also fell by 28.7 per cent in March across the board, barring transport equipment, he said.

This resulted in the trade deficit declining to USD 9.8 billion in March 2020 from USD 11 billion a year ago, he said.