Forex reserves surge $1.08 bn to $297.3 bn

Written by Banking Bureau | Mumbai, Aug 29 | Updated: Aug 30 2008, 08:06am hrs
Forex reserves climbed $1.08 billion to $297.3 billion for the week ended August 15, the Reserve Bank of India (RBI) said in its statistical weekly supplement in Mumbai. This is the first time the forex reserves have gone up in six weeks, according to the RBI.

Foreign currency assets increased $1.07 billion to $287.04 billion during the week. Gold reserves held at $9.74 billion, while reserves with the International Monetary Fund (IMF) rose $2 million to $498 million. The nations special drawing rights with the IMF were unchanged at $ 4 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 added.

Indias foreign-exchange reserves, including overseas currencies, gold and special drawing rights with the IMF increased $68.4 billion in the past year, the RBI said.

Meanwhile, bank loans rose by Rs 12,400 crore in the two weeks ended August 15, increasing outstanding credit to Rs 24,40,078 crore.

Loans to industry and consumers rose by Rs 12,782 crore during the period, while food credit fell by Rs 296 crore, the central bank said.

Credit rose 25.9%, or by Rs 5, 01,846 crore, in the year through August 15. Total bank deposits increased 21.6%, or by Rs 5, 93,726 crore, to Rs 33, 38,189 crore. At the same time, money supply grew 20.6% in the two weeks ended August 15 from a year earlier, compared with a 19.6% increase in the prior two weeks, the central bank data showed.

M3, which mainly comprises currency in public circulation, bank deposits and money invested in other savings plans, stood at Rs 41,72,361 crore as on August 15, the central bank said.