Forex reserves drop by over Rs 7,400 crore: Reserve Bank

Written by Banking Bureau | Mumbai, Mar 28 | Updated: Mar 30 2008, 04:41am hrs
The countrys foreign exchange reserves for the week ended March 28, 2008, fell by Rs 7,402 crore, the first decline in almost two months, to Rs 12,31,832 crore during the week ended March 21, Reserve Bank of India (RBI) data said Friday.

The countrys reserves with the International Monetary Fund, in the same period, dropped by Rs 7 crore to Rs 1,748 crore. Foreign-exchange assets dropped by Rs 7,468 crore to Rs 11, 91,856 crore. Foreign exchange reserves comprise of overseas currencies, gold, and special drawing rights with the International Monetary Fund. Indias foreign-exchange reserves rose by Rs 3, 67,259 crore over the past year and by Rs 3, 63,610 crore in the financial year that began April 1, the RBI said.

At the same time, the nations special drawing rights with the IMF increased to Rs 74 crore.

Meanwhile, money supply growth or M3 was up Rs 11, 284 crore at Rs 38,76,926 crore in the two weeks ended March 14. M3 mainly comprises currency in public circulation, bank deposits and money with the RBI.

Meanwhile, aggregate bank deposits outstanding as on March 14, was down by Rs 5,635 crore to Rs 30,75,224 crore, while bank credit rose to Rs 21,390 crore to Rs 22,72,603 crore. However, food credit dropped by Rs 806 crore at Rs 43,505 crore. A major contributor to the growth of bank deposits was in the non-food credit segment, which was up by Rs 22,196, at Rs 22, 29,098 crore, RBI data said.