TaxTMI Login
TaxTMI 
Login
Loading...
Press 'Enter' to add multiple search terms. Rules for Better Search
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
Press 'Enter' after typing page number.
Press 'Enter' after typing page number.
All News
Press 'Enter' after typing page number.
All News
Join Channel 
Note
Bookmark
Share
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
