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TMI BlogSources of Variation in Foreign Exchange Reserves in India during 2010-11X X X X Extracts X X X X X X X X Extracts X X X X ..... Sources of Variation in Foreign Exchange Reserves in India during 2010-11 X X X X Extracts X X X X X X X X Extracts X X X X ..... foreign exchange reserves during April-March 2010-11 have been compiled. Sources of Variation in Foreign Exchange Reserves: 2010-11 During 2010-11, there was an 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 2009-10 April-March 2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -11 April-March I. Current Account Balance -38.4 -44.3 II. Capital Account (net) (a to f) 51.8 57.3 a. Foreign Investment (i+ii) 51.2 37.4 (i) Foreign Direct Investment 18.8 7.1 (ii) Portfolio Investment 32.4 30.3 Of which: FIIs 29.0 29.4 ADRs/GDRs 3.3 2.0 b. External Commercial Borrowings 2.8 11.9 c. Banking Capital 2.1 5.0 of which: NRI Deposits 2.9 3.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. Short-Term Trade Credit 7.6 11.0 e. External Assistance 2.9 4.9 f. Other Items in Capital Account* -14.8 -12.8 III. Valuation Change 13.6 12.7 Total (I+II+III) @ 27.1 25.8 Note:*: (i) 'Other items in capital account' apart from 'Errors and Omissions' also include SDR allocations, leads and lags in exports, funds held abroad, advances received pending issue of shares under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FDI and transactions of capital receipts not included elsewhere. (ii) Increase in reserves (+) / Decrease in reserves (-). @: Difference, if any, is due to rounding off. On a balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 13.1 billion during 2010-11 as compared with an increase of US$ 13.4 billion during 2009-10. The foreign exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge reserves (including the valuation effects) increased by US$ 25.8 billion during 2010-11 as compared with an increase of US$ 27.1 billion during 2009-10 (Table 2). Table 2: Comparative Position (US$ billion) Items 2009-10 April-March 2010-11 April-March 1. Change in Foreign Exchange Reserves (Including Valuation Effects) 27.1 25.8 2. Valuation Effects (Gain (+)/Loss (-)) 13.6 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .7 3. Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) 13.4 13.1 4. Percentage of increase/decline in Reserves explained by Valuation Gain/Loss 50.2 49.2 Note: Increase in reserves (+)/Decrease in reserves (-). The valuation gains, reflecting the depreciation of the US dollar against major currencies, accounted for US$ 12.7 billion during 2010-11 as c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompared with valuation gains of US$ 13.6 billion during 2009-10. Accordingly, valuation gains accounted for 49.2 per cent of the total increase in foreign exchange reserves during 2010-11.
Ajit Prasad
Assistant General Manager X X X X Extracts X X X X X X X X Extracts X X X X
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