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Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for October-December 2013 on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April- December 2013 have been compiled.
Sources of Variation in Foreign Exchange Reserves: April- December 2013
During April-December 2013, there was an increase in the foreign exchange reserves. The sources of variation in the foreign exchange reserves are set out in Table 1.
Table 1: Sources of Variation to Foreign Exchange Reserves* |
| ||||
(US$ billion) |
| ||||
Items | 2012-13 | 2013-14 | |||
I. | Current Account Balance | -70.0 | -31.1 |
| |
II. | Capital Account (net) (a to f) | 71.1 | 39.4 |
| |
a. | Foreign Investment | 29.7 | 16.2 |
| |
of which: Foreign Direct Investment | 14.1 | 20.7 |
| ||
Portfolio Investment | 15.6 | -4.4 |
| ||
FII | 16.0 | -4.5 |
| ||
ADR/GDR | 0.2 | 0.0 |
| ||
b. | Banking Capital | 20.1 | 27.2 |
| |
Of which: NRI Deposits | 12.0 | 35.1 |
| ||
c. | Short term credit | 17.2 | -0.6 |
| |
d. | External Assistance | 0.5 | 0.1 |
| |
e. | External Commercial Borrowings | 4.3 | 6.7 |
| |
f. | Other items in capital account | -0.6 | -10.2 |
| |
III. | Valuation change | 0.1 | -6.6 |
| |
Total (I+II+III) @ | 1.2 | 1.8 |
| ||
*: Based on old format of BoP |
| ||||
On balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 8.4 billion during April-December 2013 as compared to an increase of US$ 1.1 billion during April-December 2012. The foreign exchange reserves in nominal terms (including the valuation effects) increased by US$ 1.8 billion during April-December 2013 as compared to an increase of US$ 1.2 billion during the same period of preceding year (Table 2).
Table 2: Comparative Position of Variation in Reserves | |||
(US$ billion) | |||
Items | 2012-13 | 2013-14 | |
April- December | April- December | ||
1 | Change in Foreign Exchange Reserves | 1.2 | 1.8 |
2 | Valuation Effects | 0.1 | -6.6 |
3 | Change in Foreign Exchange Reserves on BoP basis | 1.1 | 8.4 |
Note: Increase in reserves (+)/Decrease in reserves (-). | |||
The valuation loss, mainly due to decline in international prices of gold, amounted to US$ 6.6 billion during April-December 2013 as against a marginal valuation gain of US$ 0.1 billion during the same period of preceding year.
Alpana Killawala
Principal Chief General Manager
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