MUMBAI: India’s foreign exchange reserves rose $1.3 billion during the week ended March 12, largely on account of revaluation of non-dollar According to the latest data released by RBI, foreign currency assets distributed in currencies like the dollar, pound, and euro among others rose $1,249 million during the week.
SDR (special drawing rights) — the reserve currency with IMF — and the reserve capital with IMF rose by $22 million and $6 million, respectively.
The rise in foreign currency assets during the week is primarily due to the dollar’s weakening against the pound, resulting in revaluation of non-dollar assets in yen, euro and the sterling pound, which are expressed in dollars, said a treasury official of a public sector bank.
Among other developments, the central government has kept its ways and means advances (WMA) account with RBI vacant for the week ended March 12. Such borrowings within the agreed limit takes place at the repo rate, while borrowings above the limit attracts a penal interest of 2% above the repo.
State governments borrowed Rs 699 crore more during the week under the WMA facility, taking their combined outstanding balance to Rs 1,041 crore as on March 12.
Source : The Economic Times