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Date : 31 Dec 2012
Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for Q2 of 2012-13 (July-September 2012) on its website (www.rbi.org.in). On the basis of these data, the sources of variation in foreign exchange reserves during April-September 2012 have been compiled.
Sources of Variation in Foreign Exchange Reserves: April-September 2012
During April-September 2012, there was small accretion to the foreign exchange reserves. The sources of variation in the foreign exchange reserves are set out in Table 1.
| Table 1: Sources of Variation in Foreign Exchange Reserves* | ||||
| (US $ billion) | ||||
| Items | 2011-12 | 2012-13 | ||
| April-September | April-September | |||
| I. |
| Current Account Balance | -36.4 | -39.0 |
| II. |
| Capital Account (net) (a to f) | 42.1 | 39.3 |
|
| a. | Foreign Investment (i+ii) | 17.1 | 18.6 |
|
|
| (i) Foreign Direct Investment | 15.8 | 12.8 |
|
|
| (ii) Portfolio Investment | 1.3 | 5.8 |
|
|
| Of which: |
|
|
|
|
| FIIs | 0.9 | 6.2 |
|
|
| ADRs/GDRs | 0.5 | 0.2 |
|
| b. | External Commercial Borrowings | 8.4 | 1.7 |
|
| c. | Banking Capital | 19.7 | 14.9 |
|
|
| of which: NRI Deposits | 3.9 | 9.4 |
|
| d. | Short-Term Trade Credit | 5.9 | 9.5 |
|
| e. | External Assistance | 0.6 | 0.0 |
|
| f. | Other Items in Capital Account | -9.7 | -5.4 |
| III. |
| Valuation Change | 0.9 | 0.1 |
|
|
| Total (I+II+III) @ | 6.6 | 0.4 |
| *: Based on old format of BoP | ||||
On a balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 0.4 billion during April-September 2012 as compared with an increase of US$ 5.7 billion during the same period previous year. The foreign exchange reserves (including the valuation effects) increased by US$ 0.4 billion during April-September 2012 as against an increase of US$ 6.6 billion during the same period a year ago (Table 2).
| Table 2: Comparative Position of Variation in Reserves | |||
| (US$ billion) | |||
| Items | 2011-12 | 2012-13 | |
| 1. | Change in Foreign Exchange Reserves | 6.6 | 0.41 |
| 2. | Valuation Effects (Gain (+)/Loss (-)) | 0.9 | 0.05 |
| 3. | Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) | 5.7 | 0.36 |
| 4. | Percentage of increase/decline in Reserves | 13.7 | 12.2 |
| Note: Increase in reserves (+)/Decrease in reserves (-). | |||
The valuation gains, reflecting the depreciation of the US dollar against major currencies, amounted to US$ 0.05 billion during April-September 2012 as compared with valuation gain of US$ 0.9 billion during the same period last year.
Alpana Killawala
Chief General Manager
Press Release : 2012-2013/1097
