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Mumbai, Oct 17: The country’s foreign exchange reserves dropped $9.9 billion to $274 billion, the Reserve Bank of India (RBI) said in its weekly statistical supplement on Friday.
Foreign-currency assets fell $9.9 billion to $265 billion, while gold reserves held at $8.57 billion, the central bank said.
The nation’s special drawing rights with the International Monetary Fund remained unchanged at $4 million. Its reserves with the IMF fell by $3 million to $458 million.
The change in foreign-currency assets is partly because of changes in the value of the dollar against the euro, yen and other currencies during the period, the central bank said.
India’s foreign-exchange reserves have increased $17.2 billion in the past year, the bank said. The reserves comprise overseas currencies, gold and special drawing rights with the International Monetary Fund.
Meanwhile, money supply in India grew 19% in the two weeks ended September 26 from a year earlier, the central bank said.
M3, which mainly comprises currency in public circulation, bank deposits and money invested in other saving plans, stood at Rs 42.7 lakh crore on September 26.
At the same time, bank loans rose by Rs 51, 219 crore in the two weeks ended September 26, according to central bank data.
The outstanding bank credit touched Rs 25, 42,467 crore.
Food credit touched Rs 45,175 crore, while non-food credit touched Rs 24, 97,292 crore, the central bank said.
Credit rose 24.8%, or Rs 5.05 lakh crore, in the 12 months through September 26. Total bank deposits rose 19.8%, or Rs 5.68 lakh crore, in the same period to Rs 34.42 lakh crore.
Meanwhile, the banks, through four bids, have borrowed Rs 1,035 crore through RBI’s 14-day special fixed 9% repo under liquidity adjustment facility (LAF).
AP Kurian, chairman of Mutual Funds Association in India (Amfi) said, “I think, that at this juncture, fund houses which require cash only go to the bank for this special 14-day repo window. But if any fund house sells his securities and is not feeling the redemption pressure will not go to bank.” The mutual fund players point out that the liquidity position for the mutual funds industry improved as rates on short-term papers ease sharply due to the 100-basis-point cut in banks’ cash reserve ratio, announced on Wednesday by the RBI.
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