India’s foreign exchange reserves decline by over $2 billion

India’s foreign exchange reserves declined by $2.057 billion during the week ended May 17, official data showed. According to the Reserve Bank of India’s weekly statistical supplement, the overall forex reserves decreased to $417.998 billion from $420.055 billion reported for the week ended May 10.

India’s forex reserves comprise Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs) and India’s reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged lower by $2.030 billion to $390.197 billion.

Besides the US dollar, FCAs consist of 20-30 per cent of the other major global currencies.

The RBI’s weekly data showed that the value of the country’s gold reserves was stagnant at $23.021 billion.

However, the SDR value inched down by $9.8 million to $1.444 billion, while the country’s reserve position with the IMF was lower by $16.9 million at $3.334 billion.

India’s foreign exchange reserves increased by $1.368 billion during the week ended May 10, official data showed.

According to the Reserve Bank of India’s weekly statistical supplement, the overall forex reserves rose to $420 billion from $418.687 billion reported for the week ended May 3.

India’s forex reserves comprise Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs) and India’s reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $1.358 billion to $392.227 billion. Besides the US dollar, FCAs consist of 20-30 per cent of the other major global currencies.

The RBI’s weekly data showed that the value of the country’s gold reserves was stagnant at $23.021 billion.

However, the SDR value inched higher by $3 million to $1.454 billion, while the country’s reserve position with the IMF inched up by $7 million to $3.351 billion.

India’s foreign exchange (forex) reserves increased by $4.368 billion during the week ended April 26, official data showed.

According to the Reserve Bank of India’s weekly statistical supplement, the overall forex reserves rose to $418.515 billion from $414.147 billion reported for the week ended April 19.

India’s forex reserves comprise Foreign Currency Assets (FCAs), gold reserves, Special Drawing Rights (SDRs) and India’s reserve position with the International Monetary Fund (IMF).

On a weekly basis, FCAs, the largest component of the forex reserves, edged higher by $4.387 billion to $390.421 billion. Besides the US dollar, FCAs consist of 20-30 per cent of the other major global currencies.

The RBI’s weekly data showed that the value of the country’s gold reserves was stagnant at $23.303 billion.

However, the SDR value inched lower by $5.9 million to $1.449 billion, while the country’s reserve position with the IMF slipped by $13.6 million to $3.341 billion.

Meanwhile the Reserve Bank of India (RBI) said no gold was shifted outside the country in 2014 or thereafter while stating it is a normal practice for Central banks world over to keep their gold reserves overseas with Central banks of other countries such as Bank of England for safe custody.

The statement comes amidst reports that the central bank shifted abroad a part of its gold holding in 2014.

It is a normal practice for central banks world over to keep their gold reserves overseas with central banks of other countries like Bank of England for safe custody,” said the RBI statement.

“It is further stated that no gold was shifted by the RBI from India to other countries in 2014 or thereafter.

Thus the media reports are factually incorrect,” the statement said.

The Congress had tweeted a report regarding shifting of 200 tone of the RBI’s gold to Switzerland in 2014.

An RBI Research Report has found errors in the inflation projections of the apex bank’s monetary policy committee (MPC), especially for the period between April 2015 and September 2018.

According to the report, cross-country studies show higher forecast errors when share of food is high in the CPI (Consumer Price Index).

The case-in-point is the retail inflation projections from April 2015 to September 2018 which had shown two periods of large projection errors associated with unanticipated sharp fall in food inflation, especially in veggies.

Under the present policy framework, inflation forecasts are critical for the conduct of forward-looking monetary policy as they play a special role in an inflation targeting framework by acting as an intermediate target.

Hence, the significance of accurate forecasts can hardly be overemphasised, said the report. The bi-monthly resolutions of the MPC of the RBI provide inflation forecasts for up to four quarters ahead.

The Monetary Policy Report (MPR), released twice in a year (April and October), provides inflation forecasts for up to eight quarters ahead.

Inflation forecasts were also an integral part of monetary policy communication even before the adoption of the flexible-inflation targeting framework in 2016, but they assumed a special significance under the FIT regime.

Indo-Asian News Service