Earlier today, the Reserve Bank of India released the Balance of Payments (BoP) data for Q3 of 2012-13 (October-December 2012) on its website . On the basis of these data, the sources of variation in foreign exchange reserves during April-December 2012 have been compiled.
Sources of Variation in Foreign Exchange Reserves: April-December 2012
During April-December 2012, there was a marginal accretion to the foreign exchange reserves. The sources of variation in the foreign exchange reserves are set out in Table 1.
|
(US $ billion) |
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|
Items
|
2011-12 |
2012-13 |
||
|
April-December |
April-December |
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|
I. |
-56.4 |
-72.0 |
||
|
II. |
Capital Account (net) (a to f) |
49.3 |
73.1 |
|
| a. |
Foreign Investment (i+ii) |
23.9 |
29.9 |
|
|
20.7 |
15.3 |
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|
(ii) Portfolio Investment |
3.2 |
14.6 |
||
|
Of which: |
||||
|
FIIs |
2.7 |
16.0 |
||
|
ADRs/GDRs |
0.6 |
0.3 |
||
| b. |
8.1 |
4.5 |
||
| c. |
Banking Capital |
14.2 |
20.2 |
|
|
of which: NRI Deposits |
7.3 |
12.0 |
||
| d. |
Short-Term Trade Credit |
6.5 |
15.7 |
|
| e. |
External Assistance |
2.0 |
1.8 |
|
| f. |
Other Items in Capital Account |
-5.5 |
1.0 |
|
|
III. |
Valuation Change |
-1.0 |
0.1 |
|
|
Total (I+II+III) @ |
-8.1 |
1.2 |
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|
*: Based on old format of BoP |
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On a balance of payments basis (i.e., excluding valuation effects), the foreign exchange reserves increased by US$ 1.1 billion during April-December 2012 as against a decline of US$ 7.1 billion during the same period previous year. The foreign exchange reserves (including the valuation effects) increased by US$ 1.2 billion during April-December 2012 as against a decline of US$ 8.1 billion during the same period a year ago (Table 2).
|
(US$ billion) |
|||
|
Items |
2011-12 |
2012-13 |
|
|
1. |
Change in Foreign Exchange Reserves |
-8.1 |
1.2 |
|
2. |
Valuation Effects |
-1.0 |
0.1 |
|
3. |
Change in Foreign Exchange Reserves on BoP basis (i.e., Excluding Valuation Effects) |
-7.1 |
1.1 |
|
4. |
Percentage of increase/decline in Reserves |
12.3 |
7.7 |
|
Note: Increase in reserves (+)/Decrease in reserves (-). |
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The valuation gains, reflecting the depreciation of the US dollar against major currencies, amounted to US$ 0.1 billion during April-December 2012 as against a valuation loss of US$ 1.0 billion during the same period last year..
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