Forex kitty may post first drop in 6 yrs: How India, other countries tackling dollar’s strength

India’s forex reserves stood at $314.66 billion as of December 5 against $315.8 billion in June-end.

As central banks stepped up interventions to prevent their currencies from falling too sharply, global foreign exchange reserves may have fallen in the third quarter for the first time since the financial crisis.

Global reserves hit a record $12 trillion in the second quarter of this year, up from $11.86 trillion in the first three months of the year. But they are likely to witness a dip in the third quarter for the first time since late 2008/early 2009.

Here is what some countries are doing to tackle the dollar’s strength and details on their foreign exchange reserves

INDIA

$314.66 billion: India’s forex reserves as of December 5; it stood at $315.8 billion in June-end.

The Reserve Bank of India has been selling dollars to prop up the rupee, which hit a 13-month low this week

CHINA

$3.888 trillion: China’s forex reserves at the end of the third quarter.
The country saw a decline of $105.21 billion on the quarter despite a record quarterly trade surplus of $128 billion

RUSSIA

$ 416.2 billion: Russia’s forex reserves as of December 10, down from $509.6 billion in 2013-end

Russia’s central bank conducted over $80 billion in currency interventions this year to support the ruble, which has fallen around 50 per cent versus the dollar

BRAZIL

$374 billion: Brazil’s forex reserves in December, reserves stood at $380.5 billion in June.

The real has hit 10-year lows and is down 13 per cent this year, prompting the central bank to intervene via currency swaps worth up to $200 million a day

SOUTH AFRICA

$48.5 billion: South Africa’s forex reserves in December.

The rand has fallen 10.5% against the dollar this year. Forex reserves have fallen slightly as its central bank tends not to intervene to support the rand

SWITZERLAND

462.395billion francs: Swiss forex reserves at the end of November.

The Swiss National Bank last week repeated its pledge to buy “unlimited” quantities of foreign currency to prevent the franc from strengthening past the limit of 1.20 per euro.

TURKEY

$131.9 billion: Turkey’s forex reserves in December, reserves stood at $133 billion at mid-year

The lira hit a record low this week and is down 9 per cent this year.

INDONESIA

$111.1 billion: Forex reserves at the end of November, from $111.97 billion in October. The rupiah hit its weakest since 1998 this week. Bank

Indonesia said it intervened to reduce volatility rather than defend the currency

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