Mumbai, Jan 15 (IANS) India’s foreign exchange reserves slumped by $3.14 billion to $293.54 billion in the first week of 2012, the lowest level in almost 15 months, largely due to revaluation of non-dollar assets and sale of dollars by the central bank to curb the rupee’s slide.
The forex reserves fell by $3.14 billion to $293.54 billion for the week ended Jan 6 as compared to $296.68 billion in the previous week, according to the weekly statistical supplement of the Reserve Bank of India (RBI).
India’s forex reserves kitty has dipped by almost $27 billion since October end largely because of the sale of dollars by the Reserve Bank of India to rein in the value of rupee against the greenback.
Revaluation of non-dollar currencies in the reserves like the euro has also resulted by a sharp fall in the forex reserves.
This is the fifth consecutive drop in the country’s foreign exchange reserves. The reserves have dropped by $13.24 billion in the last five week under review.
Foreign currency assets, the biggest component of the forex reserves, dipped by $3.12 billion to $259.80 billion for the week ended Jan 6.
RBI does not provide any reasons for the change in foreign currency assets.
It says the assets expressed in US dollar terms include the effect of appreciation or depreciation of non-US currencies such as the pound sterling, euro and yen held in reserve.
The value of special drawing rights (SDRs) fell by $14.8 million to $4.41 billion, and India’s reserves with the International Monetary Fund (IMF) fell by $9.1 million to $2.69 billion.
However, the value of gold reserves remained unchanged at $26.62 billion.