Recession finally easing as forex reserves increase :)

Just came across news that indian forex reserves increased for the week which might be indication that foreign investors are betting on india again and thats the reason US $ reached 47.0 levels so thats a sigh of relief for the sectors which are hit by recession. so the forex reserves on october 2nd week aere at 280 billion US$.
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Economy Updates - Forex reserves at $271.239 billion down YoY

India's foreign exchange reserves fell for the week ended August 7 to $271.239 billion compared to $271.641 billion in the year-ago period.

India's gold reserves and special drawing rights (SDR), during the week, stood unchanged at $9.671 billion and $1-million respectively, the central bank said.

India's reserve position in the International Monetary Fund (IMF) marginally rose to $1.348 billion compared to $1.338 billion in the previous week, RBI said.

Reserves had risen by $3.930 billion for the week ended July 31, compared to $267.711 billion in the previous week.

Foreign currency assets, during the week, fell to $260.219 billion, against $260.631 billion in the previous week, RBI said in its weekly report.

India's Forex reserves drop by about $560 million Wk o wk

India's foreign exchange reserves fell to $263.917 billion as on July 10, from $264.477 billion a week earlier. The main reason for decline was mainly because of Changes in foreign currency assets, expressed in dollar terms, include the effect of appreciation or depreciation of other currencies held in its reserves such as the euro, pound sterling and yen

Forex reserves rises by $932 million

Indian Foreign reserves rose $932 mn during the week ended June 26, partly on account of cross currency revaluation and also some mop up of inflows by the central bank. While the government has vacated their ways and means advances (WMA) with the central bank. So foreign institutional investor's are showing confidence in indian economy amidst economic crises.

According to the latest data released by the Reserve Bank of India in its weekly statistical supplement (WSS), total foreign exchange reserves including gold and special drawing rights (SDR - currency with the International Monetary Fund) rose $932 mn to touch $264.58 bn during the week ended June 26.

Almost the entire growth in reserves was on account of the rise in foreign currency assets, which went up $924 mn, while the reserves with the IMF rose $8 mn.

India's forex reserves down by $1.734 billion

India's foreign exchange reserves declined by $1.734 billion to $254.207 billion for the week ended May 15 from $255.941 billion in the previous week.

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In the week under review, foreign currency assets fell by $1.747 billion to $243.754 billion as against $245.501 billion in the previous week, RBI said in its weekly report.

FCAs, expressed in US dollar terms, include the effect of appreciation or depreciation of non-US currencies (such as Euro, Sterling, Yen) held in reserves, RBI said.

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The gold and Special Drawing Rights remained unchanged at $9.231 billion and $1 million for the week, the central bank said.

India's reserve position in International Monetary Fund increased by $13 million to $1.221 billion in the week compared to $1.208-billion in the previous week.

Indian Forex reserves at USD 252 billion

(20/4/2009 Indian Economy updates) - India's foreign exchange reserves stood at USD 252 billion as of end-March, declining by USD 57.7 billion over the previous year, the Reserve Bank said on Monday.

The RBI said in its Macroeconomic and Monetary Developments in 2008-09 said, the overall approach to the management of India's foreign exchange reserves in recent years reflects the changing composition of the balance of payments and the 'liquidity risks' associated with different types of flows and other requirements.

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"Taking these factors into account, India's foreign exchange reserves continued to be at a level consistent with the rate of growth, the size of the external sector in the economy and the size of risk-adjusted capital flows," RBI said.

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India's Forex reserves in trouble - Goldman Sachs

Decline in capital inflows as a result of ongoing global financial turmoil may see India's foreign exchange reserves depleting by $ 39 billion during 2008-09, says a report by global banker Goldman Sachs.

also read : US recession - Why it happened

India's foreign exchange reserves, which were around $ 310 billion in March 2008, have been declining steadily and may go down to $ 271 by the close of current financial years, the report said.

The decline would mainly be on account of rising current account deficit, it said, adding "capital inflows fell to $ 13.2 billion (in Q1 2008-09) from $ 17.3 billion in Q1 of 2007-08 and $ 25.4 billion in the previous quarter (Jan-March)."

As per the latest RBI data, the country's foreign exchange reserves declined to $ 292 billion as on September 19, 2008, which can be attributed to higher trade deficit and declining portfolio investment.

Pointing out that the current account deficit will remain high during the year, the Goldman Sachs report said, "it would be a bigger concern with oil at $ 150 a barrel than at current prices."


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It further added, "with oil prices coming off substantially, one of the biggest threats to the current account deficit has been alleviated."

Even in the event of a sudden stop in capital flows, the report said, country's buffer of forex reserves would be sufficient to fund the current account and external debt payments.

At $ 271 billion in March 2009, the report said, the country would have sufficient reserves to meet 10.3 months of import bill, down from 15 months of imports in March 2008.


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