India's forex reserves up $205 million

[Chanakya's_Chant]

India's forex reserves up $205 million​

MUMBAI: India's foreign exchange (forex) reserves increased by $205.8 million to $278.80 billion for the week ended Aug 16, according to data released by the Reserve Bank of India ( RBI).

The reserves had increased by $1.43 billion to $278.60 billion for the week ended Aug 9.

The foreign currency assets (FCA) - the biggest component of the forex reserves - grew by $211.7 million at $251.56 billion, the weekly statistical supplement of the central bank showed.

The FCA had grown by $1.45 billion at $251.34 billion in the previous week.

The central bank said FCA in US dollar terms included the effect of appreciation or depreciation of non-US currencies held in reserve, such as the pound sterling, euro and yen.

Gold reserves remained stagnant at $20.74 billion. The reserves of the precious metal remained stagnant after plunging $1.28 billion in the week ended July 5.

However, the special drawing rights (SDRs) declined by $3.9 million to $4.39 billion during the week ended Aug 16, 2013, while reserves with the International Monetary Fund (IMF) went down by $2.0 million to $2.10 billion.

The SDRs had increased by $45.4 million to $4.39 billion during the previous week, while reserves with the IMF were down by $64.7 million to $2.10 billion.

Source:- India's forex reserves up $205 million - The Times of India

 

[xuxu1457]

Days ago, I read on FT that
Emerging markets central banks’ emergency reserves drop by $81bn - FT.com

Emerging markets central banks’ emergency reserves drop by $81bn
August 22, 2013 8:06 pm
By Robin Wigglesworth in London

Central banks in the developing world have lost $81bn of emergency reserves through capital outflows and currency market interventions since early May, even before renewed turmoil in emerging markets.

The figure, which excludes China, is equal to roughly 2 per cent of all developing country central bank reserves,(while China's forex increased $82.1bn to $ 3.5trillion in Q2 ) according to Morgan Stanley analysts, who compiled the data from central bank filings for May, June and July.


However, some countries have suffered more precipitous drops. Indonesia has lost 13.6 per cent of its central bank reserves from the end of April until the end of July, Turkey spent 12.7 per cent and Ukraine burnt through almost 10 per cent. India, another country that has seen its currency pummelled in recent months, has shed almost 5.5 per cent of its reserves.
Central bank reserves are held to act as a safety buffer against turmoil, and are on average still far larger than during past emerging market crises. But the pace of the drops have spooked some investors and analysts.

Many central banks are likely to have suffered further reserve depletion in August, as the turbulence caused by the US Federal Reserve’s plans to end its monetary stimulus has resumed, and compounded concerns over slowing economic growth in emerging markets.

Palaniappan Chidambaram, India’s finance minister, said on Thursday that India’s reserves were currently $277bn, compared with $280bn at the end of July, according to Morgan Stanley’s figures.

Asset managers and analysts forecast that central banks would soon give up supporting their currencies directly and take more decisive steps to stanch the money flowing out of their economies.

Some central banks have already begun to raise interest rates to buttress their currencies, most recently Turkey this week. But more rate rises are expected, despite the sluggish growth environment.

Citigroup downgraded its growth forecasts for emerging markets again this week, to 4.6 per cent this year and 5 per cent in 2014. The US bank’s economists pointed out that excluding China and the oil-rich Gulf states, the current account balance of emerging markets as a whole has deteriorated from a 2.3 per cent surplus in 2006 to a 0.8 per cent deficit this year – the biggest shortfall since 1998, the last time the developing world was gripped by crisis.

“Ultimately most of the countries with large current account deficits will have to hike rates by more if they want to better protect their currencies,” said James Lord, a Morgan Stanley strategist.

Additional reporting by Victor Mallet

 

[anilindia]

Ya... from 280b at end of july to USD 278.80 billion for the week ended Aug 16. It keep changing. this data is for Friday Aug 16..

 

[xuxu1457]

Ya... from 280b at end of july to USD 278.80 billion for the week ended Aug 16. It keep changing. this data is for Friday Aug 16..

Needn't worry, China also had $286bn forex in 2002,just as today's India, only 11years
2002 2864.07
2003 4032.51
2004 6099.32
2005 8188.72
*2006 10663.44
2007 15282.49
2008 19460.3
2009 23991.52
2010 28473.38
2011 31811.48
2012 33115.89

 

[HongWu]

Funny story from RBI.