Forex Reserves Up $33 Million, Gold Reserves Static

Foreign exchange reserves recorded a $33 million increase to $48.045 billion in the week ended December 28, 2001, over the preceding week.

In the previous week the accretion to the reserves stood at $175 million.

The rise in the forex kitty is solely on account of foreign currency assets moving up by $33 million in the reporting week to $45.178 billion over the previous week.

In the financial year so far the reserves of the country have burgeoned by $5.764 billion, while the year-on-year growth has been $8.037 billion, as per the Reserve Bank of India's (RBI) latest weekly statistical supplement.

 

Gold reserves and special drawing rights (SDRs) remained unchanged at $2.862 billion and $5 million, respectively.

Reserve money, which includes currency in circulation, bankers' deposits with the central bank and "other" deposits with the RBI, in the week ended December 28, 2001, has increased by Rs 2,925 crore over the previous week and stands at Rs 3,14,387 crore.

In the financial year so far the reserve money has jumped by Rs 11,076 crore against Rs 4,864 crore in the corresponding period in 2000-01.

Money supply (M3), during the fortnight ended December 14, 2001, has rose by Rs 4,998 crore and stands at Rs 14,47,504 crore. In the financial year so far, M3 has risen by Rs 1,35,921 crore against an increase of Rs 1,34,729 crore in the corresponding period in 2000-01.

Non-food credit offtake from scheduled commercial banks (SCBs) has declined by Rs 384 crore in the fortnight ended December 14, 2001, compared with a fall of Rs 85 crore in the previous fortnight.

Though this time of the year is traditionally a busy season for the trade and industry, the poor offtake in non-food credit was a cause for concern, economy watchers said.

The non-food credit offtake in the four fortnights since the announcement of the credit policy on October 22 was Rs 14 crore, Rs 3,536 crore, (-) Rs 85 crore and (-) 384 crore, respectively.

Non-food credit, which is a barometer of the credit offtake by the trade & industry and hence an indicator of the level of economic activity in the country, has grown by only Rs 25,484 crore in the financial year so far against Rs 38,360 crore in the corresponding nine-month period in the previous financial year.

Non-food credit outstanding in the reporting fortnight ended December 14 stands at Rs 4,96,926 crore.

Food credit extended by scheduled commercial banks (SCBs) in the reporting fornight ended December 14 inched up by Rs 34 crore over the previous fortnight. Food credit outstanding as on December 14 is Rs 51,763 crore.

The poor credit offtake is leading the banks to invest vigorously in government securities. Their collective investments in the reporting fortnight was higher by Rs 7,664 crore over the preceding fortnight.

Outstanding investments by SCBs in government securities stand at Rs 3,99,359 crore. In the financial year so far SCBs have invested Rs 59,325 crore compared with an investment of Rs 46,770 crore in the corresponding period of the previous financial year.