India's Forex Reserves at an All Time High

[migflug]

In different currency denominations of course. We don't want to end up sitting on piles of paper if dollar goes into a shock tomorrow.

Remember India's policy of 'not all eggs in one basket'?

Isnt indias major forex is in gold ??or is it dollar

 

[JanjaWeed]

$1 tillion ka reserve bhi hoga,zaroor hoga!Modi ji jab tak hain Delhi ki takht mein tab tak sab ka vikas hoga.After all Modiji ka toh yehi kehna hain ke "Sab ka saath,sab ka vikaas!".Aabki baar Modi sarkar,har baar Modi sarkar!
@JanjaWeed , @SarthakGanguly

Now we know what Modi ji meant when he said this during national elections... I don't want to become PM, want to be a Chowkidar!

 

[Brahma Bull]

More than 4 billion added in one week
Any guesses about how much forex at the end of the year ?

 

[anant_s]

In 5 years, we should target to accumulate 450-500 billions in our foreign reserve.

Not difficult if we maintain our CAD in 2-3% range and Crude prices remain in range of 60-70 USD/barrel.
Also by 2016-17 more FDI should start coming in several sectors (especially infra-structure) and that will ease pressure.
Kudos to RBI as well that helped us sail through rough times in early 2014.

 

[Bobby]

Lets go and buy some small country

 

[anant_s]

We should not keep all our forex in USD.

As much as it is tempting, a currency without backing is naturally bound to go in a state of shock in some time if not now. Therefore keeping liquidity in other critical currencies like Euros and Renmibi would make sense. Rouble is anyway not really sustaining itself and since China is our largest trading partner, we could move towards considering a Rupee-Renmibi trade agreement.

Imagine, $100 billion worth of trade done in Rupee-Renmibi.

Also, India is on the verge of signing currency swapping agreements with rest of the BRICS countries. At 30% expected annual growth rate of the trade among the BRICS, this can really give us that cushion to absorb shocks of currency fluctuations vis a vis the US dollar.

China is aggressively encouraging several economies to do trade in local currency and ditching Dollar altogether and it has started paying dividends. IMHO India should start doing same especially while engaging in commerce with African and Latin American economies. also if we can find out a way to pay some part of our energy import bill (Crude etc) in Non Dollar payment (Algeria, Iran, Venezuela), a lot of pressure would be eased on forex reserves.

More than 4 billion added in one week
Any guesses about how much forex at the end of the year ?

No we can't extrapolate that rate, usually when oil companies make payment (month or quarter ends) the outflow is more and dollar rate fluctuates. But yes 4+ billion dollars added in a small time is a news to rejoice.

 

[Brahma Bull]

Lets go and buy some small country

Like ?
Can we buy one of our neighbour ...pleeaase

 

[GORKHALI]

Like ?
Can we buy one of our neighbour ...pleeaase

Can you be more specfic ?

 

[Bobby]

Like ?
Can we buy one of our neighbour ...pleeaase

That's what I meant actually

 

[Brahma Bull]

Can you be more specfic ?

I have already received 3 negative ratings from our neighbours with huge XL sized heart

 

[anant_s]

Isnt indias major forex is in gold ??or is it dollar

It consists of 4 things:
1. Foreign Currency Assets, 2. Gold 3. Special Drawing Rights (or SDR) and 4. Reserve Position in IMF.
So the value you see a sum of above four factor.
Those of you who wish to follow Reserve values, RBI issues weekly updates and can be checked along with variation on yearly basis.
Reserve Bank of India

 

[zip]

Like ?
Can we buy one of our neighbour ...pleeaase

If you think a nation is as much valuable as its gdp then you are very wrong dear ..a streach of unused land may contribute zero to gdp but it may worth in billions ..

 

[Shotgunner51]

If I remember better, India is 7 or 8 th in the forgin exchange reserve table with China, Russia and Saudi leading the table. The gap between 1st and 2 nd number is huge. India with a population of 1.2 bil I expect it be be second in the chart with at least 1 tri FCR.

Yes, India is among the world top, ranked #9. The table was led by China, Japan, Saudi Arabia, Switzerland and Taiwan. Most recent data are as below:

Country Forex Reserve ($)

1) China : 3,946.93 B (Sep 2014 data; If take into acc of 2014 surplus $384B, expected to be over $4T now)
2) Japan : 1,261.10 B
3) Saudi Arabia : 734.50 B
4) Switzerland : 585.46 B
5) Taiwan : 420.79 B
6) Brazil : 362.55 B
7) South Korea : 362.17 B
8) Russia : 352.90 B
9) India : 339.99 B
--) Hong Kong : 324.82 B
10) Singapore : 251.46 B
...
38) South Africa : 49.10 B
https://defence.pk/threads/forex-reserves-edge-up-to-mop-133-3-bln-in-january.366908/
Forex reserves edge up to MOP 133.3 bln in January
List of countries by foreign-exchange reserves - Wikipedia, the free encyclopedia​

Some analysis:

- BRICS combined : 5,002.37 B
- Measuring in per capita, Singapore, Hong Kong, Switzerland, Saudi Arabia and Taiwan are among the highest.
- The 4 East Asian Dragons (TW/SK/HK/SG) combined : 1,359.25 B​

Country 2014 GDP ($) IMF

China : 10.355 T
Brazil : 2.244 T
Russia : 2.057T
India : 2.048 T
South Africa : 0.351 T
BRICS combined : 17.055T​

 

[HariPrasad]

Wait for some time. Currency shall start strengthening at a rapid rate.

 

[ptltejas]

The reserve is due to reduction of the price of the petroliums. we have 100 billion petrolium cost (till i recollect memory)